Boeing Co., an American aerospace company, has recently announced that it will offer buyouts for the 2nd time for its employees due to the ongoing crisis posed by the COVID-19 outbreak.
The aerospace company has reportedly cited that the aviation industry as well as the customers have been facing various challenges amid the pandemic. As the company continues to assess its workforce, it will offer a 2nd VLO (voluntary layoff) opportunity, with a pay & benefits package for its employees. It has taken this step to conserve liquidity or cash due to the slow and uncertain recovery of the aviation industry from the economic downturn across the globe.
The total number of buyouts that the company is seeking has not yet revealed. The recent announcement is an extension of its initiative taken in May 2020 to layoff over 7,000 workers in the United States. The coronavirus pandemic has led to a severe reduction in offering flight services, as a result of the imposition of travel restrictions by the governments to curb the virus spread. For example, Boeing shares have reduced by 47% year to date, as compared to its S&P 500’s SPX 4.7% gain in 2020.
As per the statement made by Dave Calhoun, Chief Executive Officer of Boeing, the latest voluntary layoff plan has been set for staffers in the commercial airplane unit, cooperate operation, and services division of the company. Workers will obtain additional information on the buyouts plan from 24th August.
Mr. Calhoun further added that the company is anticipating an efficient operation with the current strength of its workforce to meet the existing demand for flight services in the market. Despite being a challenging step during the crisis, the employee buyouts will assist the company in significantly aligning to the new normal, preserving its liquidity, and positioning it to ensure consistent development and growth in the future.
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