Boeing to cut further jobs due to impact of COVID-19 pandemic

Published on : Friday, October 30, 2020

Boeing recently confirmed that it has decided to cut down another 7,000 jobs as losses from the COVID-19 pandemic continue to devastate the aviation sector. The US manufacturer, had already announced deep cuts, and mentioned that staff numbers of the company would be down to 130,000 by the end of next year. Therefore, the company will have 20% fewer employees going into 2021 than the 160,000 it had before COVID-19 pandemic.

The latest decision arrives following Boeing’s report of a $466 million net loss for the third quarter, as compared to a profit of £1.2 billion for the same period last year. The company witnessed revenue drop 29% to $14.1 billion for the three-months to September 30, down from $20 billion last year. Boeing said concerns about its 737 Max jet had also contributed to a slump in orders.

However, the company is also expecting that U.S. deliveries of the 737 Max would resume before the end of the year, albeit at deeply reduced production rates. The fleet has been grounded since March 2019 after 346 people died in two separate air crashes. Boeing also said it had made steady progress toward the safe return to service of the 737 Max, including rigorous certification and validation flights conducted by the United States Federal Aviation Administration, Transport Canada and the European Union Aviation Safety Agency.

The 737 Max has now completed around 1,400 test and check flights and more than 3,000 flight hours as it progresses through the robust and comprehensive certification process. The joint operational evaluation board, featuring civil aviation authorities from the United States, Canada, Brazil, and the European Union, also conducted its evaluations of updated crew training.

Dave Calhoun, Chief Executive, Boeing said in a statement that the global pandemic continued to add pressure to the business this quarter, and informed that the company is aligning to the new reality by closely managing liquidity and transforming the enterprise to be sharper, more resilient and more sustainable for the long term. He mentioned that Boeing’s diverse portfolio, including government services, defence and space programs, continues to provide some stability for the company as it adapts and rebuilds for the other side of the pandemic and remain focused on the health and safety of employees and their communities.

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