Boeing will cut 16 000 jobs due to financial problems
American manufacturer of aircraft and spacecraft Boeing said it will cut staff and production after posting significant financial losses in the first quarter. The demand for air travel and new aircraft have decreased to almost zero during the outbreak of coronavirus, and the company continues to lose billions of dollars from grounding the 737 Max.
Boeing has announced that it will cut 10% of its jobs, or about 16 000 employees, through a combination of natural attrition and forced layoffs. The largest reductions are expected in the production of commercial aircraft.
the Company also will significantly cut production of its widebody passenger aircraft, the Boeing 787 Dreamliner and Boeing 777.
aerospace Losses from operating activities exceeded $ 1.7 billion, which is slightly worse than expected wall street. Boeing is losing money as crisis 737 Max, and airlines canceling and delaying orders for new aircraft because of the pandemic. The closure of factories due to health problems has cost 137 million dollars.
Boeing Shares rose 3.5% on the news of the layoffs.