Boeing Wants to Cut 7,000 Additional Jobs Within A Year
The American giant is in great difficulty faced with thecovid-19 crisis and its pre-existing problems
Boeing, still under pressure from the pandemic crisis, plans to cut 7,000 additional jobs by the end of 2021, increasing its total workforce to 130,000 employees, up from 160,000 at the start of the year. The group saw its sales decline again by 29% in the third quarter and recorded a net loss of $ 449 million over the period.
He had already announced in the spring, just after the start of the large-scale spread of Covid-19, a 10% reduction in its workforce, which had resulted in the departure of 19,000 employees. Around 3,000 people have meanwhile been hired in the company’s defense division. Dave Calhoun, CEO, warned in July that further cuts were to be expected. He stressed in a letter to employees on Wednesday that he wanted to prioritize voluntary departures and early retirements “in order to limit the impact on employees and the company”.
“The global pandemic continues to put pressure on our business this quarter, and we are aligning with this new reality by tightly managing our cash flow and transforming our business to be sharper, more resilient and more sustainable over the long term.” , he noted in the earnings release. As air traffic remains heavily affected by the pandemic, and airlines multiply order cancellations for new aircraft, Boeing delivered just 28 aircraft during the quarter, causing its commercial aviation division’s revenue to drop by 55. % to $ 3.6 billion.
The defense, space and security division, for its part, saw its revenues fall 2% to $ 6.8 billion. Sales for customer services, such as aircraft maintenance, fell 21% to $ 3.7 billion. The group’s share was 0.2% in electronic trading before the opening of the official session on the New York Stock Exchange.
Boeing Wants to Cut 7,000 Additional Jobs Within A Year - /10