Boeing Posts $641 Million Loss, Will Cut 10% of Workforce

By Paul Riegler on 29 April 2020
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Boeing announced financial results for first quarter of 2020 amidst a worldwide market it said was “frozen” by the coronavirus pandemic.

The aerospace giant reported revenue of $16.9 billion, a 22% drop from $22.9 billion in the same period in 2019. The company also reported a net loss of $641 million for the quarter, compared with a $2.15 billion profit in 2019.

“The Covid-19 pandemic is affecting every aspect of our business, including airline customer demand, production continuity and supply chain stability,” said Boeing’s CEO, David Calhoun. “Our primary focus is the health and safety of our people and communities while we take tough but necessary action to navigate this unprecedented health crisis and adapt for a changed marketplace.”

The Chicago-based company said it plans to cut staff by about 10% through voluntary measures and “involuntary layoffs as necessary.” Boeing has approximately 160,000 employees.

The company’s commercial airplane unit faces the deepest cuts.

“We’ll have to make even deeper reductions in areas that are most exposed to the condition of our commercial customers – more than 15% across our commercial airplanes and services businesses, as well as our corporate functions,” Calhoun told employees in a memorandum, a copy of which was shown to Frequent Business Traveler.

(Photo: Accura Media Group)

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