Boeing to Cut 6,770 Employees This Week

Chicago aerospace giant Boeing this week will cut 6,770 U.S. staffers. It had offered voluntary buyouts in April.
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Boeing  (BA) - Get Report said it was proceeding with involuntary job cuts, starting with 6,770 U.S. employees this week. 

The Chicago aerospace giant said it would provide support for those affected by the dismissals, including severance, health care coverage and career transition services. 

The company says its international locations are also working through job reductions, with those cuts to be announced locally. 

Boeing says the layoffs are due to covid-19's impact on the airline industry as falling air travel results in fewer commercial jets ordered and maintenance requests. 

"For those of you who are notified, I want to offer my personal gratitude for the contributions you have made to Boeing, and I wish you and your families the very best," Chief Executive Dave Calhoun said in a statement. 

Earlier in April Boeing said it was offering voluntary buyouts, with the CEO saying the offer “aims to reduce the need for other workforce actions.”

Boeing was struggling even before the coronavirus pandemic, recording zero plane orders in April, the second such month this year. 

The Puget Sound Business Journal reported Tuesday that Boeing told officials at the engineering union to expect cuts this week of between 15% and 20% to white-collar workers in the Seattle area and Southern California.

Boeing says it is seeing signs that that the industry is turning around as the global-health and economic crisis wanes. 

"We are seeing some green shoots. Some of our customers are reporting that reservations are outpacing cancellations on their flights for the first time since the pandemic started," Calhoun said.

Boeing shares at last check were 1.2% higher at $146.41.