Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Boeing to Cut 7,000 More Jobs in Jet Market’s ‘New Reality’

Boeing to Cut 7,000 More Jobs in Jet Market’s ‘New Reality’

Boeing Co. is deepening job cuts as the coronavirus pandemic and prolonged grounding of the 737 Max jetliner squeeze the planemaker’s finances.

An additional 7,000 jobs are slated for elimination by the end of next year, bringing the total cuts made through retirements, attrition and layoffs to 30,000 people, Boeing said in an email Wednesday after reporting earnings. In all, the planemaker is cutting 19% of its pre-pandemic workforce after an unprecedented collapse in air travel and jetliner sales.

“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,” Chief Executive Officer Dave Calhoun said in a statement.



Once a prodigious cash generator, Boeing is now carefully monitoring its liquidity and soaring debt while navigating the deep slump in air travel and working with regulators to lift the Max’s flying ban. Boeing has burned through about $22 billion in free cash since March 2019, when regulators grounded the company’s best-selling jet after two fatal accidents.

Boeing fell 2.6% to $151.25 at 10:12 a.m. in New York amid broad market declines. The shares tumbled 52% this year through Tuesday, the biggest decline among the 30 members of the Dow Jones Industrial Average.

The Chicago-based company consumed about $5 billion in free cash during the third quarter, in line with analyst estimates and about $620 million less than a quarter earlier, when the pandemic forced the company to temporarily shut down much of its manufacturing. Boeing didn’t announce additional production cuts for its 787 and 737 Max, defying analyst expectations, and also got a $459 million income tax boost.

“While losing money and burning through over $5 billion in three months is hardly good news, at least it wasn’t worse than this,” Robert Stallard, an analyst at Vertical Research Partners, said in a report.

Max Plans


Calhoun and Chief Financial Officer Greg Smith will discuss Boeing’s results in a conference call at 10:30 a.m. Eastern time. They are expected to provide more detail on whether the company still expects to generate cash next year as it delivers hundreds of parked 737 Max.

Boeing reported an adjusted loss of of $1.39 a share, better than the average shortfall of $2.08 expected by analysts. Sales dropped 29% to $14.1 billion. Wall Street had predicted $13.8 billion.

Analysts are already looking ahead to 2021 and Boeing’s plans to clear its storage lots of around $16 billion of Max planes built during the grounding. Rising coronavirus cases are heaping additional pressure on airlines, which have leverage to scrap or renegotiate terms for Max jets with deliveries delayed more than a year.

Boeing’s affirmation of its plan to build 31 of its single-aisle aircraft each month by early 2022 “suggests either (1) confidence in getting customers to accept most of the 450 Maxes in inventory for delivery in 2021 or (2) willingness to take longer to pare the Max inventory,” said Cai von Rumohr, an analyst at Cowen & Co.

Airbus Production


Airbus SE, which reports earnings Thursday, has also been buffeted by the pandemic. But the European planemaker has seen fewer cancellations for its narrow-body jets than Boeing, and has even signaled suppliers to be prepared to raise production rates late next year if the market rebounds.

Questions are building as to how Boeing will counter a product lineup that includes Airbus A321neo jetliners -- particularly longer-range versions of the narrow-body jet that are capable of replacing wide-body aircraft on trans-Atlantic routes.

While Boeing provides more detail on its tactics for cutting costs to survive the pandemic, analysts are starting to question its longer-term strategy and vision for the market that will emerge on the other side of the crisis.

“We need to start thinking about how the company is going to look coming out of this,” said Ken Herbert, an analyst with Canaccord Genuity,

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
House Republicans Move to Defund OECD Over Global Tax Dispute
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
Intel Reports Revenue Beats but Sees 81% Rise in Losses
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
×