General Electric to furlough almost 13,000 workers amid coronavirus crisis
General Electric (GE) Aviations announced on Monday plans to cut roughly 13,000 jobs as the coronavirus pandemic took a heavy toll for air travel demands.
GE said it aims to reduce its workforce by 25% after its biggest customers, including Boeing Co and Airbus SE, cut its productions as travel restrictions were implemented across the world.
“To protect our business, we have responded with difficult cost-cutting actions over the last two months. Unfortunately, more is required as we scale the business to the realities of our commercial market,” GE Aviation CEO David Joyce said in a memorandum to employees.
General Electric reported about 52,000 employees in its aviation unit in 2019, most became redundant after demands for aircraft engines went down.
The company had announced earlier in March plans to furlough 10% workers at the division’s US aviation to ease up $1 billion in costs from the business.
The decision was changed as GE expects lower sales in while the pandemic disrupts small and large businesses alike around the world.
Last week, GE reported a 40% sales drop in its aviation unit, with its commercial repair visits down by 60% and new engine installations lowered by 45% in April.