Boeing: to launch voluntary redundancy plan

(CercleFinance.com) - Boeing said on Thursday that it will launch a voluntary layoff plan to respond to the currently challenging market conditions.


The plan will allow eligible employees who want to leave the company to do so with a pay and benefits package, aiming to reduce the need for other workforce actions, the US planemaker said.

While the company said it plans to continue to recruit in certain areas to meet customer orders, the company is now navigating through "uncharted waters," its CEO Dave Calhoun warned.

"We're taking actions (...) based on what we know today," he said in a letter to employees.

Calhoun said Boeing needs to start adjusting to the new reality now, as it will take time for the aerospace industry to recover from the crisis.

"When the world emerges from the pandemic, the size of the commercial market and the types of products and services our customers want and need will likely be different," he said.

"We will need to balance the supply and demand accordingly as the industry goes through the recovery process for years to come," the CEO added.

The Boeing share was up 3.6% in pre-market trading on Thursday.

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