Boeing to slash 7,000 more jobs after fourth straight quarter of losses
Planemaking giant Boeing will reportedly slash 7,000 more jobs as the firm reported its fourth straight quarter of losses.
As a result, by the end of the year the US company will have shed 30,000 jobs – 20 per cent of its 160,000-strong workforce.
Boeing fell to a $466m loss for the third quarter, meaning that it is down $3.5bn for the first nine months of the year.
Shares in Boeing fell 3.7 per cent after the announcement.
The coronavirus pandemic has sent global air travel into meltdown, with passenger numbers plummeting on travel restrictions and health concerns.
Many airlines have deferred or cancelled orders and deliveries of new Boeing planes as a result of the drain on their finances.
Chief executive Dave Calhoun said that the manufacturer was “aligning to the new reality by closely managing our liquidity and transforming our enterprise”.
“As the company resizes its operations to align with market realities, Boeing expects to continue lowering overall staffing levels through natural attrition as well as voluntary and involuntary workforce reductions, and recorded additional severance costs in the third quarter”, he said.
The latest round of job cuts was announced in a memo reported by Reuters.
Before the pandemic struck Boeing was already embroiled in the worst crisis in its history after two fatal crashes on its 737 Max model.
As a result of the incidents, the model has been grounded for nearly a year and a half, although Calhoun told CNBC that the firm was close to getting the plane reapproved by regulators.
“The 737 MAX has now completed around 1,400 test and check flights and more than 3,000 flight hours as it progresses through the robust and comprehensive certification process”, it said in a statement.
Susannah Streeter, senior markets analyst at Hargreaves Lansdown, said the news was “a glimmer of light” for the firm”.
“This means the 737 Max could return to the skies early in 2021, which could lead to an upswing in orders”, she added.