• The Financial District

BOEING TO SLASH 10% OF JOBS IN ITS US PLANTS

Boeing Co. is expected to announce US job cuts this week after disclosing last month it planned to shed 10% of its worldwide workforce of 160,000 employees, with a spokesman for the Society of Professional Engineering Employees in Aerospace (SPEEA) union that represents 17,600 Boeing employees telling David Shepardson of Reuters on May 27, 2020 that about 1,300 of its members applied to take voluntary layoffs.

In April, Boeing chief executive Dave Calhoun said the company had “begun taking action to lower our number of employees by roughly 10% through a combination of voluntary layoffs, natural turnover and involuntary layoffs as necessary” and added Boeing will need to make “even deeper reductions in areas that are most exposed to the condition of our commercial customers — more than 15% across our commercial airplanes and services businesses, as well as our corporate functions.”


Boeing is struggling as the worldwide airline sector has been rocked by the travel demand falloff from the coronavirus pandemic. In April, it recorded zero orders for the second time this year and customers canceled another 108 orders for its grounded 737 MAX plane compounding its worst start to a year since 1962.


The outbreak worsened a crisis following the second of two fatal crashes that led to the grounding of the 737 MAX in March 2019. Calhoun said on May 8 he expected to resume production of the grounded 737 MAX jet this month.