Boeing to supply voluntary layoffs to workers to tide over coronavirus fallout -sources

SEATTLE (Reuters) – Boeing Co (BA.N) is ready to supply buyout and early retirement packages to workers, two individuals acquainted with the matter stated on Wednesday, a bid to mitigate the monetary fallout from the coronavirus pandemic.

FILE PHOTO: A employee leaves the Boeing Everett Manufacturing unit, amid the coronavirus illness (COVID-19) outbreak, in Everett, Washington, U.S. March 23, 2020. REUTERS/David Ryder

Boeing was initiating a voluntary layoff plan that permits eligible workers who wish to exit the corporate to take action with a pay and advantages package deal, one of many individuals stated.

Boeing Chief Government Dave Calhoun is anticipated to element a voluntary layoff plan in a memo to workers as early as Thursday, the second particular person stated.

Reuters reported final month, citing trade sources, that layoffs or furloughs have been a “actual chance” as deferred plane deliveries and downpayments as a result of a virus-related plunge in air journey compelled Boeing to contemplate harder steps to cut back money outflow.

A consultant for Boeing declined to remark.

Boeing, which calls itself America’s largest exporter, has some 150,000 workers worldwide, almost half of whom are clustered round marquee factories in Seattle’s Puget Sound area.

The buyout plan comes three weeks after the U.S. planemaker stated it will freeze hiring and additional time pay besides in sure important areas to protect money.

The coronavirus pandemic has compounded the year-old disaster over the grounding of Boeing’s 737 MAX following deadly crashes that killed 346 individuals in a five-month span.

Boeing halted 737 manufacturing in January.

Final week Boeing halted operations at its twin-aisle manufacturing facility and different services round Seattle after greater than a dozen workers have been contaminated – no less than one fatally – by the virus that causes COVID-19.

The Wall Avenue Journal reported earlier on Wednesday that an announcement on early retirement and buyout packages may come as early as Thursday.

Boeing has known as for a $60 billion bailout in entry to private and non-private liquidity, together with mortgage ensures, for the struggling U.S. aerospace manufacturing trade.

Reporting by Eric M. Johnson in Seattle and Shubham Kalia in Bangalore; Enhancing by Tom Hogue & Shri Navaratnam

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