Boeing cutting more than 12,000 U.S. jobs, thousands more planned

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WASHINGTON – Boeing Co. (BA.N) on Wednesday said it eliminated more than 12,000 U.S. jobs, including 6,770 involuntary layoffs, as the largest U.S. planemaker restructuring in the face of the coronavirus pandemic.

Boeing also revealed that they are planning “several thousand remaining layoffs” in the coming months, but did not say where these would take place.

Boeing lowers costs, as a sharp drop in aircraft demand during the pandemic aggravated a crisis for the company whose 737 MAX jet was grounded last year following a second fatal crash.

Boeing said the 737 MAX production restarted at a “low rate” at its Renton, Washington plant. Reuters reported in April that regulatory approval for the MAX was not expected until at least August.

Boeing shares closed 3.3% at $ 149.52 and then moved another 4.6% to $ 155.84 after news of the MAX production launch.

The company announced in April that it would cut 10% of its global workforce of 160,000 by the end of 2020. Boeing said on Wednesday that 5,520 US workers will take voluntary redundancies, as well as publicly announcing that it has 6,770 workers reporting involuntary redundancies.

Chief Executive Dave Calhoun told employees in an email the “devastating impact of the airline pandemic means a deep cut in the number of commercial jets and services our customers will need over the next few years, in turn, fewer jobs on our lines and in our offices. … I wish it really were a different way.

‘CFRAanalyst Colin Scarola upgraded Boeing to buy and raised its priisdoel to $ 174 from $ 112 and said that Boeing “its current crisis can grow hot and in the long term.”

In April, Boeing recorded zero orders for the second time this year, and customers canceled another 108 orders for the 737 MAX, which was the worst start to a year since 1962.

Last year Boeing collected $ 25 billion in a bond offering this month that could help prevent government support, which adding

cuts to more than 9,800 employees in Washington state, Boeing said, that “several thousand remaining layoffs will months in additional tranches will come. “resume

Boeing said it expects to737 MAX deliveries in the third quarter after regulatory approval before gradually increasing to 31 per month by 2021.

The aviation sector has been hit hard, including many Boeing suppliers.

General Electric Co (GE.N) said this month it was planning to reduce the global workforce unit of the aviation unit by as much as 25% this year, up to 13,000 jobs. SpiritAero Systems Holdings (SPR.N) announced it will cut another 1,450 jobs in Kansas.

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