Seattle-based airframer Boeing has announced that it plans to cut its workforce by 10% as it seeks to cut costs following a $641m loss in the first quarter of 2020.
Boeing made the announcement as it posted its first-quarter results and said it will seek to cut 16,000 jobs through voluntary redundancy where possible but involuntary where needed.
Boeing says that the whole aviation industry is effectively frozen as a result of Coronavirus Pandemic but Boeing is also dealing with fallout from the 737 Max aircraft which still remain grounded following two fatal accidents.
Chief Execuive Officer Dave Calhoun told staff: “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…”
The airframer also said it will be reducing production of the Boeing 787 Dreamliner down to just 7 aircraft per month by 2022. It had originally planned 14 per month.
Boeing has also cancelled its planned joint venture with Embraer’s Commercial Aviation division for $4.2bn resulting in the Brazilian manufacturer to initiate arbitration with Boeing.
The news comes just 24 hours after rival Airbus announced it too would next take swift measures to survive the current crisis which could include job losses.
