Boeing To Cut 16,000 Jobs After Massive Loss
BOEING ANNOUNCED IT WILL CUT ABOUT 16K JOBS AND SCALE BACK PRODUCTION ON TWO WIDEBODY PLANES
(CNN) – Boeing announced it will cut about 16,000 jobs and scale back production after posting a massive first-quarter loss.
The company lost $1.7 billion from its core operations, a bit worse than Wall Street had expected.
Demand for air travel has evaporated during the coronavirus pandemic, prompting airlines to cancel and delay orders for new planes as Americans cancel their travel plans. And Boeing continues to reel from the 737 Max grounding.
The 16,000 jobs are about 10 percent of Boeing’s workforce.
The cuts will be done through a combination of buyouts, natural attrition and involuntary layoffs.
Boeing also said it will drastically scale back production of two widebody passenger jets: the 787 Dreamliner and the 777.