Employee RelationsNews

Boeing plans to reduce workforce by 20% in 2021

Boeing has reportedly planned on cutting an additional 7,000 jobs due to the continued impact of Covid-19, according to the latest report from the BBC.

The US planemaker has announced the “deep cuts” will reduce its operating staff by 20% making its total employees 130,000 people by the end of next year.

The company’s recent trading statement revealed a loss of $466m (£354m) in the third quarter. It also showed revenues were down 30% in the first nine months of the year, at $42m (£32.4m).

Both the coronavirus pandemic and safety concerns about its 737 Max jet have contributed to a “slump in orders”.

The pandemic added to Boeing’s decline as it caused a “huge drop in air travel”, and pushed major airlines such as British Airways to the “brink of bankruptcy”, forcing them to cut staff and drop plans for new aircraft.

The firm has announced a 10% reduction in its workforce this spring and warned that deeper cuts could continue with buyouts and layoffs potentially happening over next summer.

The company said it does not expect travel to return to pre-crisis levels until about 2023.

Dave Calhoun, president and CEO of Boeing told the BBC: “Our diverse portfolio, including our government services, defence and space programmes, continues to provide some stability for us as we adapt and rebuild for the other side of the pandemic.”

 

 

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