Boeing has announced the initiation of a voluntary layoff (VLO) plan as a means to address financial difficulties caused by the coronavirus pandemic. According to the company, the plan “aims to reduce the need for other workforce actions” by allowing eligible employees who want to leave do so with a pay and benefits package. As previously reported by AVweb, Boeing temporarily suspended production at its Washington facilities last week.
“When the world emerges from the pandemic, the size of the commercial market and the types of products and services our customers want and need will likely be different,” Boeing CEO Dave Calhoun said in a letter to company employees. “We will need to balance the supply and demand accordingly as the industry goes through the recovery process for years to come. It’s important we start adjusting to our new reality now.”
Boeing is expected to release further details about VLO eligibility and benefits in three to four weeks. Alongside the VLO plan, the company says it will continue to recruit in some areas to “ensure [it is] able to meet … customer commitments now and in the future.”