Boeing To Cut 7,000 More Jobs As It Reports Another Loss

Pressured by another quarterly loss, Boeing announced Wednesday additional job cuts as it adapts to a prolonged downturn in the aviation industry.

The planemaker, which has been in belt-tightening mode throughout 2020, plans to eliminate about 7,000 more jobs through the end of 2021. The headcount at that time will be around 130,000, down from 160,000 in January of this year.

Boeing reported a third-quarter loss of $449 million, compared with profits of $1.2 billion in the year-ago period.

Revenues fell 29.2 percent to $14.1 billion.

A sharp drop in commercial plane travel has prompted airlines to cancel plane orders or defer deliveries, crimping Boeing’s revenues.

On top of that, the company’s finances have been under pressure due to the grounding since March 2019 of the Boeing 737 MAX, which is nearing regulatory approval to resume service after a lengthy oversight process with air travel authorities.

“The global pandemic continued to add pressure to our business this quarter, and we’re aligning to this new reality by closely managing our liquidity and transforming our enterprise to be sharper, more resilient and more sustainable for the long term,” said Chief Executive Dave Calhoun.

Boeing did not announce additional reductions in commercial plane production.

Shares in Boeing rose 0.3 percent to $155.65 in pre-market trading.

AFP