Boeing to Offer Voluntary Layoffs to Contain Coronavirus Damage
Boeing Co (BA) on Thursday announced the rollout of a voluntary layoff plan for employees as the embattled global aerospace industry is facing a long lasting impact from the coronavirus pandemic.
Under the terms of the plan, eligible employees who want to leave the company will be offered pay and benefits packages, Boeing chief executive officer Dave Calhoun said in a memo to more than of its 153,000 employees. Details of the plan are expected to be disclosed over the coming three to four weeks. The move aims to stave off additional workforce actions, Calhoun explained.
“We’re in uncharted waters. We’re taking actions based on what we know today,” Calhoun said. “It will take time for the aerospace industry to recover from the crisis.”
Read More: Boeing to Halt Production at Washington State Factory Amid Coronavirus Risk
The consensus of Wall Street analysts view the stock as a Moderate Buy based on 13 Holds, 6 Buys and 1 Sell. Boeing shares have been hit hard from the beginning of the year as its stock plunged more than 60%. (See Boeing’s stock analysis on TipRanks) The $211.15 average price target foresees a 64% recovery potential for Boeing shares in the next 12 months.
At the same time, Boeing said it will recruit in certain areas to ensure current and future customer commitments are met. The U.S. plane maker will also continue to operate commercial, defense and space, and services programs, it said.
“We’re also doing everything we can … That means continuing to deliver for our commercial and services customers, even as their own businesses slow to a trickle, Calhoun said.”
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