Boeing plans 30,000 job cuts as crisis deepens

Plunging demand for its aircrafts due to the COVID-19 pandemic has forced the company to cut its workforce from 160,000 to 130,000.
By: | October 28, 2020
Topics: Covid-19 | Job Cuts | News

 

Boeing is planning to cut 30,000 workers by the end of 2021 as it continues to suffer massive losses in light of the COVID-19 pandemic.

The US aircraft manufacturer recently announced 16,000 job losses in April followed by a further 19,000 in July after stopping the production of its 747 airliner due to plunging demand.

It said it expects to have a workforce of 130,000 by end of 2021, down from 160,000 before the pandemic.

Boeing reported a $925m loss for the third quarter of 2020, although tax benefits meant the net loss attributable to shareholders was $449m. That compared with a profit of $1.2bn in the same period last year.

Dave Calhoun, Boeing’s chief executive, said: “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.

“Our diverse portfolio, including our government services, defence and space programmes, continues to provide some stability for us as we adapt and rebuild for the other side of the pandemic.”