FILE PHOTO: Signage of The Boeing Company in Seattle, Washington, USA, June 29, 2020. REUTERS / Karen Ducey
(Reuters) – Boeing Co (PROHIBITION) said on Monday that it would offer employees a voluntary severance package with pay and benefits for the second year this year as the planner battles a coronavirus-induced delay in global air travel.
It will be offered to employees in the commercial aircraft and service companies, as well as corporate functions, Chief Executive Officer Dave Calhoun wrote in a note to employees, a copy of which was seen by Reuters.
“Unfortunately, redundancies are a hard but necessary step to align with our new reality, maintain liquidity and position ourselves for the eventual return to growth,” Calhoun said in the note.
“We expect to see a significantly smaller market in the next three years.”
The health crisis, which has hammered out planners, airlines and suppliers, has added to Boeing’s misery, which has to do with a production freedom and years-long foundation of the 737 MAX after two fatal accidents.
The company currently has no set goal and encouraged all eligible employees interested in the voluntary redundancy package to apply, Boeing said in a statement.
The move to extend the overall workforce reduction above the initial target of 10% is in response to feedback from workers, Calhoun said.
The planner had said in April that it would cut its 160,000-person workforce by about 10%, many of which would have to be ready by its commercial aircraft division by the end of this year.
More details will be made available to employees from August 24, according to the CEO’s note.
Report of Bhargav Acharya in Bengaluru; Edited by Arun Koyyur
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