MIAMI – Increasing its prior workforce cuts, Boeing will make more redundancies. In a letter to employees, Boeing CEO David Calhoun said the company will offer voluntary layoffs in various units.

According to the letter, the new buyouts will be allocated to Boeing’s commercial airplanes unit, services division, and corporate operation.

Calhoun also said that despite these layoffs being hard, they were necessary steps to align the business to its new reality.

The CEO refers to the current market demand, and Boeing’s liquidity preservation and position for the eventual return to growth.

Renton Boeing Assy Plant. Photo: Staff

Boeing Job Cuts in Numbers

While the manufacturer forecasted a reduction of 10% in its payroll in April, Bloomberg reports that about 19,000 cuts will take place at the company.

In contrast, Boeing is hiring around 3,000 employees in its defense and space division.

According to Bloomberg, these government contracts are currently a primary source of revenue for the company.

The company announced 6.770 redundancies in May. Boeing South Carolina plant. Photo: Boeing

Boeing Further Actions and Concerns

The manufacturing industry has seen several orders deferrals and cancelations. Adding to that, Boeing has also been in the eye of the storm because of the grounding of various aircraft.

Last month, the company announced the end of the production of the Boeing 747 jet or “Jumbo.” It will consider consolidating the production of the Boeing 787 Dreamliner aircraft instead.

In addition, the company is making efforts to return the Boeing 737 MAX aircraft to the skies this year. The Federal Aviation Administration (FAA) recently proposed final corrections for the jet to fly again.

Calhoun says Boeing expects a “significantly smaller marketplace over the next three years.”

By now, the US manufacturer is engaged in a major enterprise transformation effort and evaluating its opportunities to improve, added Calhoun.

Featured image: Boeing headquarters. Photo: Boeing