GE Moves to Cut Roughly 13,000 Aviation Workers

In response to the corona virus crippling the aviation industry, General Electric plans to cut roughly 13,000 jobs in its jet engine business. This is an effort to cut costs as GE's biggest customers, Boeing Co and Airbus SE, continue to cut back on production in the coming months. These 13,000 jobs comprise about 25% of GE's global aviation workforce.

GE Aviation CEO David Joyce wrote, "As this pandemic continues to advance, our understanding of its impact on our industry and our business has evolved." Global commercial air traffic is expected to drop about 80% and aircraft manufacturers have slowed production continuing into at least 2021.

This is interesting to me because sometime we forget about the forces behind the big names like Boeing Co and Airbus SE. General Electric is a main supplier in the chain of the building the commercial airliners we see everyday. Companies like Boeing Co and Airbus SE are also customers. When the customer demand is drastically cut back, the company supplying this demand has to make the necessary cuts as well.

Article by: Thomas Gryta