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Boeing To Cut Workforce By 10% After Second Straight Quarterly Loss

Boeing To Cut Workforce By 10% After Second Straight Quarterly Loss

Boeing will slash manufacturing of its foremost industrial planes

Airplane maker Boeing goes to chop its workforce by 10 p.c by means of a mix of voluntary and involuntary layoffs and can slash manufacturing of its foremost industrial planes, together with the 787 and 777, following a second straight quarter the place it reported losses, information company AFP reported on Wednesday. The announcement was made by the corporate’s Chief Executive David Calhoun, in a message to staff that accompanied an earnings launch.

Boeing has about 160,000 staff worldwide.

The firm’s quarterly loss stood at $1.70 billion, or $1.70 per share, in contrast with a revenue of $1.99 billion, or $3.16 per share, a 12 months earlier.

The firm stated that  it could additional cut back manufacturing of 787 Dreamliner to seven jets a month amid a stoop in journey demand, in keeping with information company Reuters. Boeing additionally expects to renew 737 MAX manufacturing at low charges in 2020, however didn’t give a timeline. 

Boeing might want to make “even deeper reductions in areas that are most exposed to the condition of our commercial customers — more than 15% across our commercial airplanes and services businesses, as well as our corporate functions,” Calhoun stated.

Reuters additionally reported that the corporate is working with funding banks on a multibillion-dollar bond-fueled financing bundle because it goals to shore up its stability sheet amid a pointy journey downturn because of the coronavirus pandemic. The proceeds might quantity to $10 billion or extra, relying on investor demand, the report stated, quoting sources.

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