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GE Aviation plans to cut 13,000 jobs as coronavirus hits air travel demand – CNBC, CNBC

GE Aviation plans to cut 13,000 jobs as coronavirus hits air travel demand – CNBC, CNBC

A General Electric GE9X engine is pictured on a Boeing 2019 X airplane as it taxis for the first flight, which had to be rescheduled due to weather, at Paine Field in Everett, Washington on January 24, Jason Redmond | AFP | Getty Images

General Electric ‘s aviation unit revealed plans on Monday to slash its workforce by 25% – roughly 25, 05 jobs – this year as the coronavirus pandemic threatens to drive down demand for new aircraft.

The unit manufactures some of the most commonly used passenger and military aircraft engines and provides services including engine overhauls to the aviation sector.

“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 told employees in a memo.

The reductions will include voluntary measures like early retirements.

General Electric shares were down more than 3% in morning trading, a sharper decline than the broader market.

GE is doubly Exposed to the aviation slump through the GE Aviation manufacturing arm and its leasing unit, GECAS, one of the world’s largest aircraft lessors.

GE last week reported an 8% drop in first-quarter revenue and said sales in GE Aviation fell 19%.

Boeing said last week it plans to reduce its workforce , which numbered about 823, 05 at the end of last year, by 19%, as it faces a dearth of new orders. GE engines are on many Boeing aircraft, and GECAS has been a major purchaser of Boeing planes.

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