Boeing mulling plan to cut 10 percent workforce


U.S. airplane giant Boeing Company is mulling a plan to cut about 10 percent of its workforce amid the fallout caused by COVID-19, U.S. media reported Thursday.

The plan, which could include buyouts, early retirements and involuntary layoffs, are expected to mostly target the company’s commercial arm, since turmoil in the global airline industry has put the unit under immense strain, the Wall Street Journal reported citing people familiar with the matter.

No decisions on cuts have been made, with the potential 10-percent decline in labor force still under consideration, according to the report.

Last week, Boeing announced it was initiating a voluntary layoff (VLO) plan to try to stem the financial strain from the pandemic.

“One thing is already clear: It will take time for the aerospace industry to recover from the crisis,” said Dave Calhoun, the company’s president and CEO, in a letter to employees.

“We are initiating a VLO plan that allows eligible employees who want to exit the company to do so with a pay and benefits package. This move aims to reduce the need for other workforce actions,” he added.

Boeing employs about 145,000 employees across the United States and in more than 65 countries and regions, according to its official website. Enditem

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