Boeing President and CEO Dave Calhoun on Wednesday announced the company's worldwide involuntary layoffs.
The company has concluded the voluntary layoff (VLO) program since last month and now has to start involuntary layoffs (ILO). "We're notifying the first 6,770 of our U.S. team members this week that they will be affected," Calhoun said in a letter to employees.
"Our international locations also are working through workforce reductions that will be communicated locally on their own timelines in accordance with local laws and benefit terms," he added.
Boeing will provide all the support to those impacted by the ILOs, which includes severance pay, COBRA health care coverage for U.S. employees and career transition services, Calhoun said.
The COVID-19 pandemic's devastating impact on the airline industry means a deep cut in the number of commercial jets and services the customers will need over the next few years, which in turn means fewer jobs on production lines and in offices, according to Calhoun.
He said the company will have to adjust business plans constantly until the global pandemic stops whipsawing the aviation markets. It will take years to return to the situation before the COVID-19 outbreak.
Boeing employs about 145,000 employees across the United States and in more than 65 countries and regions, according to its official website.
Boeing President and CEO Dave Calhoun on Wednesday announced the company's worldwide involuntary layoffs.
Boeing will provide all the support to those impacted by the ILOs, which includes severance pay, COBRA health care coverage for U.S. employees and career transition services, Calhoun said.
