Boeing braces for another round of layoffs
Boeing is ready to lay off 12 thousand employees
Boeing Says It Will Eliminate More Than 12,000 US Jobs As Part Of Cost Cut Due To Pandemic.
The company also disclosed its plans to lay off several thousand more employees in the coming months, but did not specify exactly where they will go..
Boeing is optimizing costs as slump in aviation demand during the pandemic exacerbated the crisis for a company already hit by the 737 MAX story.
737 MAX production is known to have already resumed at the Renton, WA plant. In April, Reuters reported that regulatory approval for the scandalous model was not expected, at least until August..
Boeing shares closed 4.6% higher at $ 155.84 yesterday on news of production restart.
The company announced in April that it will lay off 10% of its workforce by the end of 2020. 5,520 US employees are expected to write resignations «at will», and another 6,770 workers will be forcedly laid off.
Boeing to restart 737 MAX production, layoff thousands
«The devastating impact of the pandemic on the aviation industry means significant reducing the number of commercial flights and services our clients will need over the next few years, which in turn means fewer jobs are needed in our factories and in our offices. I would really like there to be some other way to solve this problem», – the CEO told his employees Dave Calhoun.
CFRA Analyst Colin Scarola believes that the aircraft manufacturer can withstand the current crisis and grow in the long term.
In April, Boeing recorded a complete lack of orders for the second time this year. 108 737 MAX orders canceled, exacerbating worst corporate start in 58 years.
Boeing raised $ 25 billion in bond placement last month, avoiding government bailouts.
The entire aerospace sector has been hit hard, including many of Boeing’s suppliers.
General Electric Co plans to reduce the workforce of its aviation division this year by 25% (13 thousand people). Spirit Aero Systems announced that it is laying off 1,450 employees in Kansas.