Boeing to Cut 7,000 More Jobs as Prolonged Pandemic and 737 Max Grounding Tumble Earnings

Boeing Company expects to double the job-cut scheme as the prolonged coronavirus pandemic and the grounding of its 737 Max.

 

Amid a dim outlook for its aircraft sales where people are limited by border restriction due to the coronavirus, Boeing’s executives scrapped the forecast of returning to business next year and stated that the company would cut an additional 7,000 jobs instead.

The layoff would bring the number of Boeing employees including retirements and attrition to 30,000 people by the end of 2021, which is 19% of Boeing’s workforce at pre-Covid.

 

 

Chief Executive Officer Dave Calhoun said that the company is taking a tough but necessary action to adapt to the new market reality and transform our business to be sharper and more resilient for the long term.

“Covid-19’s continued impacts have had a more prolonged and deeper impact on our industry, and we’ll have to further reduce our workforce,” saud Calhoun.

Boeing has burned through about $22 billion in free cash since March 2019 after regulators grounded the company’s best-selling jet after two fatal accidents. Chief Financial Officer Greg Smith projected that the cash outflow will probably continue until 2022.

 

In 3Q19, the planemaker reported a net loss of $466 million, compared to its net profit of $1,167 million in 3Q19. The revenue reported a revenue for the quarter at $14,139 million, compared to a revenue of $19,980 million in the same quarter last year. The company has a total backlog of $393 billion, including more than 4,300 commercial airplanes