Boeing is shedding 16,000 jobs as it aims to reduce the workforce to fewer than 130,000 by the end of 2021 as the coronavirus pandemic drives low demand for air travel and aircraft, according to the company’s press release. Boeing reported a $466 million net loss in Q3, down from a profit of $1.2 billion a year earlier. Sales were $14.1 billion, down 29% from a year ago, although higher than $13.9 billion estimates.
- Boeing has reduced production and targets due to low demand and announced the consolidation of 787 Dreamliner manufacturing at a single facility in North Charleston, South Carolina.
- Approximately 19,000 employees are leaving Boeing this year, but the company is adding more jobs in the more stable defense unit.
- Boeing targeted 10% of staff reductions, which stood at 160,000 people at the start of the year.
- The company’s largest sales declines were in the commercial aircraft unit, where revenues slipped 56% to $3.6 billion from $8.6 billion in the comparable quarter of 2019
- Boeing reported negative free cash flow of $5.08 billion, above $5.6 billion estimates.
Boeing shares BA: NYSE are down 2.61%.