Jobs of Workforce to be layoff by GE Aviation
The giant, General Electric Co (GE.N) announced that it was planning to cut its global aviation workforce by 25%, or up to 13,000 jobs, including involuntary and voluntary layoffs, due to aircraft reduction schedules caused by COVID-19 pandemic.
As U.S. passenger airline as well as air travel demand has fallen by 95%, the jobs layoffs are the primary mounting woes for the aviation sector. Even GE shares were down 4% on at $ 6.23 approx.
According to the various reports, Boeing Co (BA.N) states that it would cut 10% of its global workforce, or 16,000 jobs, due to the less production rates, whilst the supplier SpiritAero Systems Holdings (SPR.N) will be cutting another approx. 1,450 jobs in Kansas.
The GE Aviation job layoffs consists of the $3 billion approx. in cash and assets, including previously announced cuts by the company of 10% cut to its U.S. workforce.
As per sources, GE Aviation Chief Executive David Joyce stated employees “deep contraction of commercial aviation is unprecedented, affecting every customer worldwide. Global traffic is expected to be down approximately 80% in the second quarter.”
Earlier, GE Aviation issued layoff creating an impact of about 50% of its U.S. repair, maintenance, overhaul employees and new engine manufacturing. The company has also applied hiring freeze, cancelling salaried merit and reducing less essential spending.
None of these two aviation giants GE and Boeing applied for government assistance from an approx. $17 billion U.S. Treasury fund especially for national security related organizations.
Moreover Boeing Chief Executive Dave Calhoun says “take two to three years for travel to return to 2019 levels and it will be a few years beyond that for the industry to return to long-term growth trends.”
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