GE GE Aerospace

By Matt Grossman

General Electric Co. said Monday that it would lay off about 10% of the workforce at its aviation subsidiary in the face of the Covid-19 pandemic.

The subsidiary, GE Aviation, said that the layoffs are coming in response to falling demand as airlines ground big portions of their fleets. The jet-engine manufacturer said that up to half of its maintenance and repair employees might be without work for three months.

The company has also enacted a hiring freeze, canceled raises, and cut non-essential spending. The changes will save $500 million to $1 billion in 2020, GE Aviation said.

David Joyce, GE Aviation's chief executive, said he will forgo his salary for the rest of 2020.

"With regard to our financial position, the company is sound," Mr. Joyce said in a statement.

Write to Matt Grossman at matt.grossman@wsj.com

(END) Dow Jones Newswires

March 23, 2020 09:50 ET (13:50 GMT)

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