GE cutting up to one-quarter of aviation unit’s workers

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General Electric Co. plans to cut up to 25 percent of its aviation unit’s workers due to the coronavirus pandemic’s effects on the travel industry, the company announced Monday

GE Aviation Chief Executive David Joyce said in a statement directed to employees that as much as a quarter of the unit’s workforce will voluntarily or involuntarily leave. Reuters reported that up to 13,000 jobs would be affected.

The company cites decreased air travel during the pandemic for the cuts, saying aircraft manufacturers have announced scaled-back operations through 2021.

“The deep contraction of commercial aviation is unprecedented, affecting every customer worldwide,” Joyce said in the statement 

“To protect our business, we have responded with difficult cost-cutting actions over the last two months,” Joyce added. “Unfortunately, more is required as we scale the business to the realities of our commercial market.”

The GE Aviation job cuts are included in the $3 billion cash savings plan that the company announced last month. GE had already announced a 10 percent reduction of the U.S. workforce in March, Reuters noted. 

U.S. air travel has fallen by 95 percent during the coronavirus pandemic, as many would-be flyers remain under stay-at-home orders, and others are afraid to travel.  

Boeing last week announced a 10 percent decrease of its global workforce, amounting to 16,000 jobs, and supplier Sprit AeroSystems Holdings said 1,450 jobs in Kansas will be lost.

Tags air travel Aviation Coronavirus COVID-19 David Joyce General Electric Job cuts Jobs

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