Boeing axes almost 7,000 US-based jobs

Photo: © Jakob Wert / IFN

Boeing is starting to reduce its United States-based workforce through almost 7,000 involuntary layoffs, President and Chief Executive Officer Dave Calhoun wrote in a letter to employees.

Last month, the company already announced that it would cut approximately 10 percent of its total workforce, and 15 percent in its commercial airplanes division. At the same time, while reporting only 50 deliveries and almost no new orders for the first quarter of 2020, Boeing also outlined that it is cutting production of its two best selling widebody aircraft types, the 777 and the 787 Dreamliner.

As voluntary layoffs have been concluded, the company is now moving on to involuntary layoffs, affecting 6,770 US-based employees at the current time. Boeing confirmed that there will also be reductions at its international locations, but has not disclosed specific non-US dismissals yet.

The Covid-19 pandemic’s devastating impact on the airline industry means a deep cut in the number of commercial jets and services our customers will need over the next few years, which in turn means fewer jobs on our lines and in our offices.Dave Calhoun, Boeing President and CEO

Calhoun goes on to say that ‘enormous challenges’ remain for the company, despite the workforce and production reductions. Boeing would constantly have to adjust its business plans until the ongoing Coronavirus crisis is finally over.

Later on the same day, Boeing Commercial Airplanes announced that it is resuming production of the still-grounded 737 MAX family at limited rates.