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Crisis at Boeing: 7,000 additional job cuts, 30,000 in two years

2020-10-28T14:23:53.509Z


For the fourth consecutive quarter, Boeing posted results in the red.Boeing, still under pressure from the pandemic and the 737 MAX crisis, plans to cut 7,000 additional jobs by the end of 2021 to increase its total workforce to 130,000 employees, against 160,000 at the start of the year. The group saw its turnover fall again by 29% in the third quarter and recorded a net loss of $ 449 million over the period. The aircraft manufacturer had already announced in th


Boeing, still under pressure from the pandemic and the 737 MAX crisis, plans to cut 7,000 additional jobs by the end of 2021 to increase its total workforce to 130,000 employees, against 160,000 at the start of the year.

The group saw its turnover fall again by 29% in the third quarter and recorded a net loss of $ 449 million over the period.

The aircraft manufacturer had already announced in the spring, just after the start of the large-scale spread of Covid-19, a 10% reduction in its workforce, which had resulted in the departure of 19,000 employees.

At the same time, around 3,000 people were hired in the company's defense division.

Voluntary departures and early retirements

In a letter addressed to employees, Dave Calhoun, the CEO, underlines his desire to give priority to voluntary departures and early retirements “in order to limit the impact on employees and the company.

"

According to him, “The global pandemic continues to put pressure on our business this quarter, and we are aligning ourselves with this new reality by tightly managing our liquidity and transforming our business to be sharper, more resilient and more sustainable. long term.

"

Relaunch the 737 MAX?

Air traffic remains severely affected by the pandemic and many companies are increasing cancellations of new aircraft orders, Boeing delivered only 28 aircraft during the quarter, dropping the revenues of its commercial aviation division from 55% to 3, $ 6 billion.

To get its head out of the water a little, Boeing hopes to be able to take off again before the end of the year its 737 MAX, which has been grounded since March 2019 after two accidents that killed 346 people.

A green light from the civil aviation authorities around the world would allow deliveries of this aircraft to resume, which was modified in early 2021.

Source: leparis

All business articles on 2020-10-28

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