May 13, 2021

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Boeing offers second voluntary layoff package to employees


A plane flies over the Boeing Co. manufacturing facility in North Charleston, South Carolina, U.S., on Monday, May 4, 2020.

Sam Wolfe | Bloomberg | Getty Images

Boeing will be offering a second voluntary layoff package to employees to depart the company, with pay and benefits, the planemaker said on Monday.

“While we have seen signs of recovery from the pandemic, our industry and our customers continue to face significant challenges,” the company said in a statement. “We have taken proactive steps to adjust to the market realities and position our company for the recovery. As we continue to assess our workforce and in response to employee feedback, we will be offering a second voluntary layoff (VLO) opportunity for employees to depart the company voluntarily with a pay and benefits package.”

The offers will be extended to employees in the commercial airplanes division, services division and corporate offices.  

This is a re-opening of the previous buyout offer the company extended earlier this year to bring down overall employment. The company is not giving a number as to how many more buyout offers it plans to extend. 

Travel demand has cratered because of the coronavirus pandemic as measures such as stay-at-home orders and international travel bans try to stop the spread of Covid-19. 

In a letter to Boeing employees Monday, CEO Dave Calhoun said: “This action will extend our overall workforce reductions beyond the initial 10% target and will allow more employees who want to depart the company to do so voluntarily with a pay and benefits package. Importantly, it also will help limit additional involuntary workforce actions.”

CNBC’s Phil LeBeau contributed to this story



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