The Boeing Co is going to offer buyout and also early retirement packages for their employees, two people who are familiar with the matter stated as reported by Reuters on Wednesday, in a way to reduce the financial fallout due to the coronavirus or COVID-19 pandemic.
Dave Clhoun, the Boeing Chief Executive is expected to discuss in detail a voluntary layoff proposal in a memo for the employees as early as on Tuesday, as stated by one of the sources.
Boeing facing financial crisis due to Coronavirus
Reuters reported last month citing industry sources that layoffs or furloughs were a "real possibility" as deferred aircraft deliveries due to a virus-related drop in air travel forced Boeing to consider tougher steps to reduce cash outflow. The buyout plan comes three weeks after the US planemaker said it would freeze hiring and overtime pay except in certain critical areas to preserve cash. The coronavirus pandemic has compounded the year-old crisis over the grounding of Boeing's 737 MAX following a series of fatal crashes.
Boeing halted 737 production in January. Last week Boeing halted operations at its twin-aisle factory and other facilities in Seattle's Puget Sound area after more than a dozen employees were infected - at least one fatally - by the virus that causes COVID-19. The Wall Street Journal reported earlier that an internal announcement offering early retirement and buyout packages could be announced as early as Thursday.
(With agency inputs)