Boeing expected to announce voluntary buyouts in message to all 161,000 employees

Boeing Co. is expected to announce voluntary buyouts in a message to its 161,000 employees on Thursday, according to a person familiar with the plans.

No details were available for the size of the workforce reductions or areas in the company where they might occur, said the person, who asked not to be identified as the matter is confidential.

Boeing and Airbus SE face a sharp contraction in demand as airlines around the world pare schedules and park planes as the coronavirus pandemic curbs travel. About 44{4bae5313c1ffa697ce99995897f7847f1ebf3bca0fb7c37396bb602eb24323d3} of the global aircraft fleet is in storage, according to an estimate by Cirium.

Chicago-based Boeing, already reeling from a prolonged grounding of its 737 Max, faces a falloff in demand for twin-aisle aircraft like its 787 Dreamliner and 777X. Wide-body jetliner production could tumble by 60{4bae5313c1ffa697ce99995897f7847f1ebf3bca0fb7c37396bb602eb24323d3} over the next three years, Jefferies analyst Sheila Kahyaoglu predicted in a March 31 report.

The Wall Street Journal first reported the voluntary buyouts at Boeing. A Boeing representative in Asia couldn’t immediately comment.

More must-read stories from Fortune:

—Everything you need to know about the coronavirus stimulus checks
—How small-business owners and the self-employed can take advantage of the coronavirus stimulus package
USPS warns might have to shutter because stimulus package provides no funding
—Whiskey makers bend the rules for barrel-aging, signaling a new wave for bourbon

—5 things to know about unemployment benefits in the COVID-19 stimulus package
—LISTEN: Two health care CEOs on why coronavirus tests and vaccines are the ammunition needed to fight COVID-19
—WATCH: The greatest designs of modern times

Subscribe to Outbreak, a daily newsletter roundup of stories on the coronavirus pandemic and its impact on global business. It’s free to get it in your inbox.

Source link

Comments Off on Boeing expected to announce voluntary buyouts in message to all 161,000 employees