Boeing CEO offers staff buy out & redundancy packages to limit financial damage created by Covid-19

BOEING has offered staff buy out and voluntary redundancy packages as the plane manufacturer tries to limit the financial damage created by the coronavirus pandemic.

According to Boeing CEO Dave Calhoun, “It will take years for the airline and aerospace industry to recover from the coronavirus crisis.” In a memo to employees, Calhoun said the company is offering voluntary redundancy packages, offering pay and benefits for “exiting” staff “to reduce the need for other workforce actions.”

The aircraft manufacturer, along with airlines around the globe, has been hit hard by the coronavirus pandemic, with many in the global aviation industry struggling financially. Just, last week, Boeing closed its plant in Washington state, following the death of a staff member, who died from coronavirus.

“One thing is already clear: It will take time for the aerospace industry to recover from the crisis. 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,” stated Calhoun.

“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,” he added.

Calhoun also promised his staff ‘transparency’: “We’re in uncharted waters. We’re taking actions – including offering this VLO plan – based on what we know today. They will bridge us to recovery as long as we’re not confronted with more unexpected challenges. I can’t predict with certainty what the next few months will bring, but I can commit to being honest about what’s happening and doing everything we can to protect our people and our business through this crisis.”