“The global pandemic has changed the way we live and work,” said Boeing’s chief executive, David L. Calhoun, in a note to staff. “It is changing our industry. We are facing utterly unexpected challenges.”
The company announced it would cut 10% of its jobs, about 16,000 positions, through a combination of buyouts, natural attrition and involuntary layoffs. The cuts will be deepest in Boeing’s commercial airplane unit — which will lose about 15% of jobs. And Boeing said it would drastically scale back production of two widebody passenger jets, the 787 Dreamliner and the 777.
“I know this news is a blow during an already challenging time,” Mr. Calhoun said in the note. “I regret the impact this will have on many of you. I sincerely wish there were some other way.”
Boeing reported a net loss of $641 million in the first quarter, compared with a $2.1 billion profit a year earlier.
The company has said that it does not expect air travel to recover to levels reached before the pandemic for three years and that it would most likely take several years more for travel to return to its previous long-term growth rate.
Here’s who’s axed staff so far:
Air Canada will lay off 5,100 members of its cabin crew, about half of its current roster, as its planned flights for April have been cut by nearly 80%.
Air New Zealand will let 3,500 workers go, equaling about one-third of its workforce.
Avis Car Rental Boston’s Logan International Airport reportedly laid off an undisclosed number of workers.
Boeing laid off 6,770 workers after announcing in April it would eliminate 10% of its workforce, reportedly through voluntary layoffs, natural turnover and involuntary layoffs.
Enterprise Holdings, the parent company of car renters Enterprise, National and Alamo laid off 743 workers in North Carolina.
Flight Centre, Australia’s largest travel agent, is laying off and putting on leave a third of its 20,000 employees.
Helloworld Travel, an Australian travel agent, let 275 employees go.
Car rental company Hertz plans to lay off 10,000 workers from its North American business.
Ridesharing company Lyft let 982 workers go, an elimination of 17% of its workforce; an additional 288 were furloughed.
Norwegian Air said that it would temporarily lay off up to 50% of its workforce, meaning 7,300 workers, and suspend 4,000 flights due to the pandemic.
Scandinavian Airlines said Sunday it will temporarily lay off 10,000 employees, equal to 90% of their staff.
Stena Line, a European ferry operator, announced that 950 jobs would be cut in Sweden due to a sharp decline in travel bookings.
Canadian airline and travel company Transat AT let go of 3,600 workers, or about 70% of its workforce.
TripAdvisor eliminated 600 roles in the U.S. and Canada, and 300 more in other countries, as part of a 25% workforce reduction; an undisclosed number were furloughed.
ZipCar, a car rental company, laid off 20% of its 500 workers.
Boeing said “several thousand remaining layoffs will come in much smaller additional groups over the next few months.”