MIAMI – US aircraft engine manufacturer General Electric (GE) warns that there will be job cuts due to the ongoing COVID-19 pandemic.
This is one of the latest setbacks for the aviation world as the health crisis is poised to last until 2021, even if the grounding of Boeing’s 737 MAX jets is over and news from the developers of the COVID vaccine reported positive data.
Statement from GE
The company in a statement, said, “As we continue to closely monitor market conditions, we are examining a range of options to appropriately scale our business to match the realities of the global airline industry recovery from the severe impacts of COVID-19.”
Air Force unit chief John Slattery said in a video message delivered Friday that further job cuts would be a component of these options.
The Boston-based company in May declared a 25% job cut in the aviation unit in 2020, citing aircraft reduction programs due to the pandemic. in fact, in the quarter through the end of September, GE reduced approximately 20% of its workforce and saved nearly US$1bn in costs.
The company constantly monitors the recovery in demand to ensure the business is adequately sized for the future.
GE’s aviation division experienced a worsening in revenues, which fell by up to 39% in the third quarter, with orders more than halving during the period, with up to 60% decline in both commercial engines and commercial services.
This exacerbated problems for GE’s aviation division, which produces engines for both Boeing and Airbus. I also remember that GE had to invest in the re-design of the compressors of the new GE9X, the engine of the new Boeing 777X.
Featured image: The mighty GE9X mounted on Boeing 777-9x. Photo: GE
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