Boeing warns of 30,000 job cuts by end of next year

The US plane maker, which announced cuts of 16,000 in April and deepened the plan to 19,000 in July, has attributed the further cuts to the grounding of the 737 MAX and the pandemic.

Huge drops in air travel and nations shutting borders have stalled the aviation industry and caused lots of airlines to halt plans for new aircraft.

Boeing has cut production rates as orders have dropped. Meanwhile the 737 MAX, which has been grounded since March 2019, is in the process of regaining certification in the US and Europe. Production of the plane is expected to restart by the end of the year.

Boeing president and CEO Dave Calhoun commented: “The deep impacts of COVID-19 on the commercial aviation market and our business are reflected in lower revenue, earnings and cash flow compared to this time last year. Our overall business continuity efforts and the diversity of our customer base, including our government, defense and space customers, provided some relief as we made difficult decisions and delivered on our commitments.

“Despite the near-term headwinds, we remain confident in our long term future and are focused on sustaining critical investments in our business and the meaningful actions we are taking to strengthen our safety culture, improve transparency and rebuild trust.”

www.boeing.com