Boeing to announce sweeping job cuts across US plants

Boeing’s commercial aircraft division could lay off more than 15% of its workforce, according to CEO Dave Calhoun
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Boeing has had few occassions to celebrate since its new 777X made its first flight in January.
Boeing has had few occassions to celebrate since its new 777X made its first flight in January.

Unions representing thousands of Boeing employees have claimed that the planemaker is about to announce the first set of job cuts across its US facilities after it revealed last month that it planned to lay off 10% of its workforce.

Boeing declined to comment on a report by Reuters, citing a spokesperson from the Society of Professional Engineering Employees in Aerospace (SPEEA) union, which represents 17,600 Boeing employees.

The spokesperson told Reuters that Boeing informed the union it should expect layoff notices on Friday.

In Boeing’s quarterly update in April, the company disclosed plans to lay off around 15,000 people in what CEO Dave Calhoun described as a ‘body blow’.

The company has faced a drop in demand for its planes as airlines writhing from the coronavirus crisis have begun delaying and cancelling aircraft orders.

Calhoun warned last month that Boeing’s commercial aircraft division will reduce its workforce by more than 15%.

Boeing’s first quarter results show that it made a loss of $1.5 billion in the period while sales plummeted 26% to $17 billion.

The coronavirus crisis has been worsened by Boeing’s ongoing 737 Max troubles.

The manufacturer lost 108 orders for its 737 Max aircraft in April causing its order book to slip below 5,000 for the first time in seven years.

A similar level of layoffs is expected at Boeing’s rival, Airbus.

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