The Strategist

General Electric to lay off nearly 13,000 employees

05/05/2020 - 02:38

American General Electric Co. (GE) will reduce approximately 13 thousand employees of the division engaged in the production of aircraft engines.

GE told employees on Monday that it plans to reduce 25% of its airline’s global staff in the coming months.

The division, which employed about 52 thousand people at the end of 2019, produces engines for the Boeing Co. and Airbus SE. Its largest buyers reduced production amid suspension of flights of hundreds of aircraft due to restrictions on movement caused by the COVID-19 pandemic.

The company is expanding its planned measures to reduce costs amid the adverse effects of the coronavirus pandemic on the aviation industry.

In March, the company announced plans to cut about 10% of its employees in the aircraft manufacturing division, who work in the United States, that is, about 2.5 thousand people.

In early April, GE employees staged a protest. They demanded, in particular, reprofiling of aviation production in a crisis.

Last week, GE reported an 8% decline in revenue in the first quarter due to a decrease in revenues in the production of components for aviation. The company will cut operating expenses by more than $2 billion, and will also reserve $3 billion in cash to mitigate negative effects of the pandemic.

source: bloomberg.coom