Boeing To Cut Workforce By 10% After Second Straight Quarterly Loss
Airplane maker Boeing is going to cut its workforce by 10 percent through a combination of voluntary and involuntary layoffs and will slash production of its main commercial planes, including the 787 and 777, following a second straight quarter where it reported losses, news agency AFP reported on Wednesday. The announcement was made by the company's Chief Executive David Calhoun, in a message to employees that accompanied an earnings release.
Boeing has about 160,000 employees worldwide.
The company's quarterly loss stood at $1.70 billion, or $1.70 per share, compared with a profit of $1.99 billion, or $3.16 per share, a year earlier.
The company said that  it would further reduce production of 787 Dreamliner to seven jets a month amid a slump in travel demand, according to news agency Reuters. Boeing also expects to resume 737 MAX production at low rates in 2020, but did not give a timeline.Â
Boeing will need to make "even deeper reductions in areas that are most exposed to the condition of our commercial customers — more than 15% across our commercial airplanes and services businesses, as well as our corporate functions," Calhoun said.
Reuters also reported that the company is working with investment banks on a multibillion-dollar bond-fueled financing package as it aims to shore up its balance sheet amid a sharp travel downturn due to the coronavirus pandemic. The proceeds could amount to $10 billion or more, depending on investor demand, the report said, quoting sources.
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