Boeing President and CEO Dave Calhoun on Thursday called for workers to volunteer for layoffs as the coronavirus has slowed demand for the company’s products.
“We are initiating a voluntary layoff (VLO) plan that allows eligible employees who want to exit the company to do so with a pay and benefits package. This move aims to reduce the need for other workforce actions,” he wrote in a letter to employees.
The plan is expected to “bridge us to recovery as long as we’re not confronted with more unexpected challenges,” the letter stated. It also noted that “it will take time for the aerospace industry to recover from the crisis.”
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Boeing, as well as the entire aviation industry, has been battered by the coronavirus as air travel has nearly come to a complete stop. Calls for workers to be at home has challenged production. The $2 trillion pandemic relief bill signed by President Trump included more than $50 billion in loans and grants meant to help airlines keep employees on payroll.
Boeing has also been hampered by crashes involving its 737 Max, which led to the grounding of the airplane that could last into the summer.
