Boeing will send 2.5 thousand employees on unpaid leave

Created on 11.06.2020 16:56

Boeing, the American Aircraft Corporation, will send about 2.5 thousand employees on voluntary unpaid leave as part of the first step of larger-scale reductions, as the coronavirus pandemic caused damage to global air operations. It is reported by The Wall Street Journal, with reference to trade union representatives.

Last month, the company declared its readiness to reduce 160,000 employees by 10% this year amid declining airliner manufacture. 

This would be the first serious reduction for the company since 2017, when it laid off about 1.5 thousand employees as part of a large cost-cutting program.

Boeing is also expected to reduce workplaces in its fast-growing service division, as far as airlines reduce aircraft parts costs and in their central corporate offices. Airbus SE, Boeing's European competitor, also intends to reduce workplaces as part of its cost-cutting efforts. General Electric Co., producing engines and other parts for both aircraft manufacturers,  also reduce employment.

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