Boeing (NYSE:BA) on Wednesday said it would cut thousands of additional jobs through the end of next year as it prepares for weaker aircraft demand for years to come because of the coronavirus pandemic.
The company’s revenue came in ahead of estimates but the company is still struggling as virus and a plunge in air travel hurts demand for new aircraft.
Boeing’s CEO Dave Calhoun told employees that the company aims to have a staff of 130,000 by the end of 2021. Earlier this year, Boeing targeted a 10% cut to its staff, which stood at 160,000 people at the start of the year.
"As we align to market realities, our business units and functions are carefully making staffing decisions to prioritize natural attrition and stability in order to limit the impact on our people and our company," said Calhoun in a staff note.
BA reported a third-quarter loss of $1.39 per share, vs. $2.52 a share expected. Revenue came in at $14.1 billion, vs. $13.9 billion expected
Boeing shares were plunged $2.64, or 1.7%, to $152.60. in early Wednesday trading.
Boeing reported negative free cash flow of $5.08 billion, better than analysts’ estimates and than the previous quarter’s negative $5.6 billion.
The pandemic’s impact on air travel demand, which is still not back to half of last year’s levels, has worsened Boeing’s crisis, which started two years ago with the first of two crashes of its best-selling aircraft, the 737 Max.
