Boeing to lay off 7,000 employees this week as virus wrecks demand

Boeing will lay off this week 7,000 employees, just a portion of the layoffs the aircraft manufacturer targets as the coronavirus pandemic virus wrecks travel demand.

Over 5,000 other Boeing employees are separating from the company voluntarily, it said in a statement on Wednesday.

The Chicago-based company is set to reduce 10 percent of its headcount, which numbered around 160,000, its 2019 annual report showed.

The virus has wrecked demand for new jetliners and number of cancellations is piling up, depriving Boeing of much-needed revenue.

“I wish there were some other way,” Boeing chief executive Dave Calhoun said.

“For those of you who are notified, I want to offer my personal gratitude for the contributions you have made to Boeing, and I wish you and your families the very best.”

While air travel demand has perked up from lows hit in April, it is still below 20 percent of the norm.