Grounded Boeing 737 MAX plane are seen parked in an aerial photograph at Boeing Discipline in Seattle, Washington, July 1, 2019.Lindsey Wasson | Re
Grounded Boeing 737 MAX plane are seen parked in an aerial photograph at Boeing Discipline in Seattle, Washington, July 1, 2019.
Lindsey Wasson | Reuters
Boeing, which is already shedding 16,000 jobs, stated it will minimize 1000’s extra via the tip of subsequent 12 months because it prepares for a protracted hunch in air journey and plane demand due to the coronavirus pandemic.
Boeing’s CEO Dave Calhoun informed workers that the corporate goals to have a employees of 130,000 by the tip of 2021. Earlier this 12 months, Boeing focused a 10% minimize to its employees, which stood at 160,000 individuals at the beginning of the 12 months.
“As we align to market realities, our enterprise models and features are fastidiously making staffing choices to prioritize pure attrition and stability with a view to restrict the impression on our individuals and our firm,” CEO Dave Calhoun stated in a employees observe. “We anticipate a workforce of about 130,000 workers by the tip of 2021. All through this course of, we are going to talk with you each step of the best way.”
The announcement got here after the corporate reported third-quarter outcomes, which had been forward of estimates however present Boeing’s struggles within the pandemic.
Listed here are the numbers:
- Loss: $1.39 per share, vs. $2.52 a share anticipated by Refinitive’s consensus estimates
- Income: $14.1 billion, vs. $13.9 billion anticipated
Boeing shares had been up 0.7% in premarket buying and selling.
Boeing reported detrimental free money move of $5.08 billion, higher than analysts’ estimates and than the earlier quarter’s detrimental $5.6 billion, in accordance with FactSet.
The pandemic’s impression on air journey demand, which remains to be not again to half of final 12 months’s ranges, has worsened Boeing’s disaster, which began two years in the past with the primary of two crashes of its best-selling plane, the 737 Max.
Regulators are on the tail-end of the planes’ overview however have nonetheless not signed off on them, stopping Boeing from delivering them to clients and crimping its money move in consequence.
Boeing executives will element their outcomes on a 10:30 a.m. ET name.
This story is creating. Please verify again for updates.