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Due to global travel restrictions resulting from the coronavirus pandemic, there are currently numerous aircraft on the ground. The American industrial group General Electric (GE) has announced extensive job cuts for its aircraft division.
It is slated to reduce the global number of employees by 25 percent this year, GE Aviation chief David Joyce said in a memo to employees. This would affect a total of around 13,000 jobs. Previously, there was talk of ten percent.
Joyce wrote that the industry slowdown is unprecedented. The crown pandemic should lead to a drop in air traffic of around 80 percent in the second quarter. The stake of parent company General Electric, which had long been seriously affected, dropped significantly in US trade and in some cases lost more than six percent.
GE client Boeing is raising money from investors
GE Aviation manufactures engines for Boeing, among others. The client was also seriously affected: Due to the debacle surrounding the short and medium-range 737 Max jet, which was banned after two accidents, the situation was already precarious when the corona pandemic nearly halted air traffic.
However, last week, the company announced that it had raised a total of $ 25 billion from investors by issuing bonds. That is why there is currently no plan to seek additional funding, not even state aid.
