Boeing Layoffs 2020: 9 Things for BA Stock Investors to Know

BA is cutting 6,770 employees

Boeing (NYSE:BA) president and CEO Dave Calhoun announced on Wednesday that involuntary layoffs are starting at the airplane manufacturer.

Here’s everything investors need to know about the Boeing layoffs.

• According to Calhoun, Boeing is laying off a total of 6,770 employees.
• The company is notifying these workers about the layoffs this week.
• Employees affected by this will receive severance pay, career transition services, and COBRA health care coverage if they are in the U.S.
• These new layoffs come after the company completed its voluntary layoff program.
• Boeing also notes that layoffs are coming to its international locations as well.
• It doesn’t reveal how many employees this will affect.
• The company also points out that these layoffs will be announced locally and will take place at the proper times for each situation.
• The layoffs are the effect of the novel coronavirus disrupting travel and the economy.
• Calhoun also notes that Boeing is seeing signs of recovery, but warns it will take years to bounce back to its pre-coronavirus levels.

Here’s a statement from Calhoun in the Boeing news release about the layoffs.

“We are seeing some green shoots. Some of our customers are reporting that reservations are outpacing cancellations on their flights for the first time since the pandemic started. Some countries and U.S. states are starting cautiously to open their economies again. And some parts of our business, most notably on the defense side, will continue hiring to meet customer commitments and fill critical skill positions.”

BA stock was up 2.1% as of Wednesday afternoon.