This story is part of AIN's continuing coverage of the impact of the coronavirus on aviation.
GE Aviation will cut 10 percent of its U.S. workforce as a result of the Covid-19 pandemic’s effect on the aviation industry, its parent company announced today. In addition, the engine-maker will furlough approximately 50 percent of its MRO staff for 90 days.
“The rapid contraction of air travel has resulted in a significant reduction in demand as commercial airlines suspend routes and ground large percentages of their fleets,” said GE chairman and CEO H. Lawrence Culp Jr. “As a result, GE Aviation is announcing several steps that, while painful, preserve our ability to adapt as the environment continues to evolve.”
In addition to the job cuts and furloughs, GE Aviation has instituted a hiring freeze, a cancellation of salaried merit increases, a “dramatic” reduction in non-essential spending, and a significant decrease in its contingent workforce. GE Aviation president and CEO David Joyce also will forgo half of his salary.
“Our hardworking, determined employees are the heart of our business, and it is difficult to have to take these steps due to external factors like this,” Joyce said. “But we must respond immediately with every action within our control to protect our ability to serve our customers now and as the industry eventually recovers.”
The actions are expected to save the company $500 million to $1 billion this year, GE added.