Boeing is preparing a second round of voluntary layoff packages as the embattled jet maker continues to regroup amid a coronavirus-induced slowdown in global air travel and corresponding plunge in demand for new airplanes.
In a note to staff, Boeing CEO Dave Calhoun said the Chicago-based company will offer employees in its commercial airplanes and services businesses as well as corporate functions voluntary buyout packages, including pay and benefits.
“Unfortunately, layoffs are a hard but necessary step to align to our new reality, preserve liquidity and position ourselves for the eventual return to growth,” Calhoun said in the note, adding that the company anticipates "... a significantly smaller marketplace over the next three years.”
Boeing in April said it would cut its 160,000-person workforce by about 10% as carriers continued to grapple with the Covid-19 pandemic and dramatically reduced demand for air travel, and in turn new planes.
More details regarding the voluntary layoffs will be made available to Boeing staff beginning Aug. 24, according to the note.
Jim Cramer discusses Boeing and his thoughts about airplanes in the video above.