GE warns of more job cuts at aviation business amid sluggish recovery

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A General Electric GE9X engine is featured on a Boeing 777X airplane as it is the taxi for the first flight, which was rescheduled due to weather, on January 24, 2020 at Pine Field in Everett, Washington.

Jason Redmond | AFP | Getty Images

General Electric on Tuesday warned of more job cuts at its aviation unit, citing a protracted recovery for the airline industry from the impact of the coronovirus crisis.

The job cuts are the biggest setback for the aviation sector, with the industry expected to wreak havoc by 2021, as US regulators attribute the 20-month grounding of the Boeing Co-MAX 737 jets and Kovid-19 vaccine to positive data.

The company said in a statement, “As we closely monitor market conditions, we are confident of choosing our business on an appropriate scale to match the realities of the global airline industry’s recovery from the severe effects of the Kovid-19.” Investigating options. “

In an internal video message given Friday, a company official said, John Slaty, head of GE’s aviation unit, said the additional job cuts would be a component of those options.

The company’s shares were up nearly 5% at $ 10.58.

In May, the Boston-based group announced plans to cut the global workforce at its aviation unit by 25% or 13,000 jobs by 2020, citing a long-term aircraft reduction program due to the epidemic.

During the quarter to the end of September, GE had reduced about 20% of its aviation workforce and realized close to $ 1 billion in cost savings.

Last month, the company said it was “actively monitoring” to speed up the pace of demand recovery to ensure the business is “appropriately sized” for the future.

Revenue at GE’s aviation unit, its largest, fell 39% in the third quarter, while more than half during the aviation order period, with a 60% drop in both commercial engines and commercial services.

This has reduced the hassles in GE’s aviation unit, which manufactures engines for Boeing and Airbus, and has already been released from the grounding of Boeing’s 737 MAX aircraft.

The Wall Street Journal first reported the development.

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