City in­cluded in more job cuts at Boe­ing

Chicago Sun-Times - - BUSINESS - BY DAVID ROEDER, BUSI­NESS & LA­BOR RE­PORTER droeder@sun­times.com | @Roed­erDavid

More job re­duc­tions at Boe­ing’s Chicago head­quar­ters and its com­mer­cial avi­a­tion units are due with the com­pany CEO’s new in­vi­ta­tion to work­ers to take a vol­un­tary lay­off deal.

The CEO, David Cal­houn, dis­closed the of­fer Mon­day in a let­ter to em­ploy­ees. It does not give a tar­geted num­ber of job cuts, but they are in ad­di­tion to prior plans to trim the pay­roll by 16,000 peo­ple, or about 10% of Boe­ing’s to­tal.

Cal­houn said lack of demand for air travel dur­ing the pan­demic, which in turn has caused air­lines to can­cel jet or­ders, is forc­ing his hand. The vol­un­tary lay­offs, in­clud­ing of­fers for severance and con­tin­ued health insurance, will tar­get cor­po­rate jobs and the com­mer­cial air­planes and ser­vices busi­nesses, he said. Less af­fected will be Boe­ing’s de­fense and space units.

“The ac­tions we’ve al­ready taken as a com­pany to strengthen liq­uid­ity will help us bridge to the other side of the cri­sis, but we an­tic­i­pate see­ing a sig­nif­i­cantly smaller mar­ket­place over the next three years,” Cal­houn said in a let­ter, a copy of which the Sun-Times re­viewed.

Boe­ing em­ploys about 500 peo­ple at its Chicago head­quar­ters. A spokesman could not say how many of those jobs might be af­fected.

“I truly wish the cur­rent mar­ket demand could sup­port the size of our work­force,” Cal­houn said. “Un­for­tu­nately, lay­offs are a hard but nec­es­sary step to align to our new re­al­ity, pre­serve liq­uid­ity and po­si­tion our­selves for the even­tual re­turn to growth.”

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