COVID-19 is hitting GE Aviation hard financially, prompting the Evendale-based company to cut 10% of its workforce in the U.S. That amounts to 2,600 jobs in Southwest Ohio.
GE Chairman and CEO Lawrence Culp told employees Monday about the cuts, which include a temporary lack of work for 50% of U.S. maintenance workers for 90 days, a hiring freeze, cancellation of raises, and notice that head of GE Aviation David Joyce will forego half his salary starting April 1.
"The aviation industry is feeling the impact of this global pandemic most acutely. 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. As a result, GE Aviation is announcing several steps that, while painful, preserve our ability to adapt as the environment continues to evolve. "
Culp goes on to say, "taken together, we expect these cost and cash actions will preserve $500 million to $1 billion in 2020."
The GE chairman says he won't take a salary for the rest of the year.
It's unclear which jobs in Southwest Ohio will be affected. There are 10,000 employees locally, including in Erlanger, Evendale, Dayton and Peebles.
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