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Deeper job cuts at Boeing as pandemic throttles air travel

Deeper job cuts at Boeing as pandemic throttles air travel
Posted at 10:19 AM, Oct 29, 2020
and last updated 2020-10-29 13:21:49-04

Boeing will cut more jobs as it continues to lose money and revenue during a pandemic that has smothered demand for new airline planes.

The company said Wednesday that it expects to cut its workforce to about 130,000 employees by the end of next year, down 30,000 from the start of this year.

That is far deeper than the 19,000 reductions that the company announced three months ago.

"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," said Boeing President and Chief Executive Officer Dave Calhoun in a news release.

Boeing is updating its plans for jobs on the same day it's reporting a $449 million loss for the third quarter, a swing from the $1.17 billion it earned in the same period last year.

Calhoun added that revenue in the third quarter for commercial airplanes was decreased to $3.6 billion due to COVID-19 lowering delivery volume.

According to CNN, Boeing's shares dropped about 2% on Wednesday.

The loss was narrower than analysts expected, however.

Revenue tumbled 29% to $14.14 billion.