Boeing will cut more than 12,000 jobs as it suffers from a sharp drop in air travel due to the coronavirus pandemic, and more cuts are looming.
The company said Wednesday it will lay off 6,770 employees in the United States this week, and another 5,520 workers will have to accept offers to voluntarily leave in the coming weeks.
Boeing had previously reported that it would cut 10% of a workforce that numbered about 160,000. A Boeing spokesman said Wednesday’s decision represents the largest number of layoffs, and that several thousand more jobs will be cut in the coming months.
The layoffs are expected to be concentrated in the Seattle area, where Boeing has its commercial aircraft business. The defense and space division is stable and will help mitigate the impact of declining air travel and demand for passenger planes, the company said.
About the crisis
The Boeing crisis began last year when two of its 737 Max aircraft were wrecked, prompting regulators around the world to land this model of aircraft. The company’s problems have been deepened by the coronavirus, which has reduced global air traffic by up to 90% and caused airlines to postpone or cancel orders and deliveries of new aircraft.
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