Boeing is introducing a voluntary layoff plan for its employees as the embattled airframe maker prepares for the post-Covid 19 recovery process which it said could take, “years to come”.
The news was announced in an email to employees from Boeing chief executive Dave Calhoun, who said that it was “already clear” that it would take time for the aerospace industry to recover from the crisis.
“When the world emerges from the pandemic, the size of the commercial market and the types of products and services our customers want, and need will likely be different. We will need to balance the supply and demand accordingly as the industry goes through the recovery process for years to come. It's important we start adjusting to our new reality now,” said Calhoun.
In his email Calhoun didn’t spell out how much Boeing was planning to shrink but he did say that natural turnover and voluntary employment actions were two key levers to reduce headcount and the firm is therefore introducing a voluntary layoff (VLO) plan for employees to leave with a pay and benefits package.
“This move aims to reduce the need for other workforce actions,” said Calhoun.