Boeing plans to reduce workforce in civil aviation unit: Report

As the coronavirus outbreak causes a financial crisis for the airline industry, Boeing plans to cut its workforce by 10 per cent in the civil aviation unit, according to media reports. Boeing currently employs around 1,60,000 people worldwide and the layoffs could affect 7,000 workers. Boeing assembles most of its civilian aircraft in Washington state, where more than 70,000 workers work. According to reports, the job cuts would mostly affect the unit manufacturing the grounded 787 MAX. 

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Boeing had resumed production at its Puget Sound facility in Washington state a day before the layoff news came in. Boeing is taking preventive measures at its facility, where workers have been advised to stay six feet apart from each other, and handwashing stations have been set up with health checks becoming mandatory for all. 

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Boeing had earlier revealed a voluntary layoff program for its employees citing the crisis the aviation industry is expected to face due to coronavirus outbreak. Boeing President and CEO Dave Calhoun wrote a letter to the company's employees where he outlined the voluntary layoff (VLO) plan. Eligible employees who opt for the VLO plan would get pay and benefits package, said a release by the company in early April. 

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Coronavirus impact

Airline industries across the globe are on the verge of collapse because of the lockdown imposed by several countries to prevent the spread of the coronavirus outbreak. The lockdown has put a restriction on air travel both domestically and internationally. The IMF has projected that most of the countries under lockdown will register a negative growth this year with some experts predicting the aftermath to be worse than the great depression. The deadly disease, which is believed to have originated from a wet market in China's Wuhan city has so far killed more than 1,84,000 and has infected over 2.63 million people globally.

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(Image Credit: AP)