NNN – No New News? – 5/27/20 – Boeing lays off nearly 7,000 workers
By Christopher Violante Isidore and Gregory Wallace, CNN Business
Updated 6:18 PM ET, Wed May 27, 2020
New York (CNN Business)Boeing laid off 6,770 workers Wednesday, part of a plan to reduce 16,000 total jobs because of the rapid decrease in air travel during the Covid-19 pandemic.”We have come to the unfortunate moment of having to start involuntary layoffs,” CEO Dave Calhoun said in a message to employees Wednesday. “I wish there was some other way.”While Boeing notified the laid-off workers Wednesday, most will stay on the payroll through the end of July, the comany said.Before Wednesday’s involuntary layoffs, 5,520 Boeing employees had accepted a voluntary buyout package, a Boeing spokesperson told CNN.That brings job cuts at the company to more than 12,000 so far. Boeing had disclosed the 16,000-job reduction target last month. Additional rounds of layoffs are ahead “over the next few months,” said the spokesman.
People are flying again … sort ofBoeing (BA) and rival Airbus have encountered widespread delays and cancellations in existing orders for planes as most of the planes around the globe have been grounded due to the sharp drop in air travel. Both aircraft makers have slashed production plans for at least the next few years.The 16,000 jobs to be eliminated are equal to about 10% of Boeing’s global staff, almost all of whom work in the United States. Almost all of the job cuts are coming from the commercial aircraft unit, rather than its defense or space operations.Enter your email to receive CNN’s nightcap newsletter.close dialog