Boeing Co. notify employees about additional job cuts as pandemic continues to hurt business

Boeing Co. notify employees about additional job cuts as pandemic continues to hurt business

Boeing Co. (BA) on Wednesday posted a loss for the fourth consecutive quarter, sending its shares down more than 3 percent during Wednesday trading. The loss was mainly attributed to weak sales amid coronavirus pandemic negative effects and grounding of 737 MAX.

The Chicago, Illinois-based plane manufacturer has cut production and trimmed thousands of jobs amid huge losses it faced during the pandemic. CEO Dave Calhoun notified employees through a memo on Wednesday that the company plans to cut 30,000 jobs, significantly higher than its previous lay off plan.

Separately, Dave said that Boeing is expected to receive approval for 737 MAX from the U.S. Federal Aviation authority. Following the approval, the company is expected to restart deliveries in the fourth quarter.

The air travel market was one of the hardest hit industries from the pandemic, which pushed many airline operators to the brink of bankruptcy. Some major airlines were left with no choice but to seek government aid to survive through these months. Many had to cut expenses and delay aircraft purchases, which hurt Boeing that generates most of its revenue by selling aircrafts.

Boeing reported an adjusted loss of $1.39 per share for the third quarter, narrower than a loss of $2.52 per share forecasted by analysts. Revenue for the quarter came in at $14.14 billion, down 29 percent from the comparable period last year. Analysts on average were looking for $13.90 billion in revenue.

Free cash outflow in the quarter jumped to $5.08 billion, significantly higher than $2.89 billion last year, while Boeing’s overall debt rose to $61 billion.

BA shares are currently trading around $149.93 on volume of 15 million. The 52-week range of the stock is $89.00-$375.60. Boeing share price has significantly dropped in the current fiscal year. The stock has declined about 54 percent on year-to-date basis.

Share:

Share on facebook
Facebook
Share on twitter
Twitter
Share on pinterest
Pinterest
Share on linkedin
LinkedIn