New York (CNN Business)Boeing announced it will cut an additional 7,000 jobs as its losses continue to mount following a plunge in revenue.
The aircraft maker had already announced was reducing staff by 19,000 jobs earlier this year, through a combination of voluntary and involuntary layoffs. It said Wednesday it expects to get down to about 130,000 jobs by the end of the year, which would mean an additional 7,000 job cuts, in addition to the natural attrition at the company throughout the year. In August it had warned employees there would be additional job cuts coming, as it offered a new round of buyouts.The company posted a loss of $754 million, excluding special items, in the most recent quarter as revenue fell $5.8 billion, or 29%. Airlines have put the brakes on new plane deliveries and are canceling orders because of the sharp drop in air travel caused by the pandemic. Boeing gets most of its revenue from an aircraft sale at the time of delivery.
While Boeing’s loss is well down from the $3.3 billion loss in the second quarter and $1.7 billion it loss in the first three months of the year, it’s clear the company is under increasing stress from the Covid-19 pandemic’s hit to airlines.Boeing did not immediately identify where the job cuts would occur, but it said in July it is considering consolidating production of the 787 Dreamliner, now built in two different plants in Washington state and South Carolina, into a single facility.
Source: edition.cnn.com