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Boeing To Offer Second Layoff Plan

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Boeing Co (BA) will offer a second voluntary layoff package to employees to depart the company with a pay and benefits package, according to several reports citing a letter sent by the company's chief executive officer Dave Calhoun to the employees. The move will extend overall workforce reductions beyond the initial 10 percent target unveiled in April.

In the letter to the employees, Boeing chief executive officer Dave Calhoun reportedly said that the voluntary layoff will be offered largely to staffers in the company's commercial airplanes unit, services division and corporate operation. The company did not provide the exact number of employees to be laid-off in the second round.

In May, Boeing announced layoffs of about 6,770 U.S. team members, as part of its earlier plan of 10 percent reduction in its workforce.

Citing the weak demand and delay in purchases of jets during the virus crisis, Boeing on April 29 had announced its plans to trim employee number by roughly 10 percent through a combination of voluntary layoffs, natural turnover and involuntary layoffs. The company then said deeper reductions would be there in certain areas, expecting more than 15% cut across commercial airplanes and services businesses, as well as corporate functions.

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