Boeing Announces Further Job Cuts as Financial Losses Continue to Mount

Troubled airplane manufacturer Boeing has released its detrimental earnings today, suffering a fourth consecutive quarter of losses amid the grounding of its 737 MAX and the coronavirus pandemic decimating air travel worldwide.

The prolonged grounding of its once-popular 737 MAX jetliner, followed by the pandemic crisis, has created significant financial hardship for the US plane maker. As a result, its fourth quarter debt soared from $19.2 billion to $61 billion, while revenue dropped by 29% to $14.14 billion. The losses amount to a decline of $1.39 per share, which surprisingly, is less than Wall Street’s average forecast of $2.52 per share in losses.

As a result of the adverse financial losses, Boeing CEO Dave Calhoun announced that the company will begin reducing its global workforce of 130,000, following a furlough moratorium that expired in October. An additional 7,000 jobs will be cut following today’s announcement, which by the end of the year will amount to a total of 30,000 Boeing employees being eliminated via either layoffs, buyouts, or attrition. Nonetheless, Boeing still anticipates that deliveries of its 737 MAX will resume before the end of the year, with Calhoun reaffirming the company’s goal to meet its build rate of 31 narrow-bodies per month come 2022.

In the meantime, the Federal Aviation Administration is expected to lift the grounding order that was imposed on all 737 MAX airplanes back in March 2019 as early as November of this year. However, the move is still dependent upon the approval of Boeing’s training changes and software updates. Likewise, the European Union Aviation Safety Agency (EASA) announced that the 737 MAX is now safe to return to European skies before the end of the year.

What was once one of the most popular passenger airplanes, Boeing is now rebranding the 737 MAX as the 737-8. The plane has now been grounded for more than a year following two catastrophic crashes that killed a total of 346 passengers in Ethiopia and Indonesia. It was determined that both the crashes were the result of newly installed, yet faulty, flight control software that caused the plane to suddenly nosedive into the ground following takeoff.

The harrowing crashes lead to widespread condemnations of Boeing’s 737 MAX, bringing attention to the company’s poor quality controls and aircraft flaws. US lawmakers that investigated the airplane manufacturer determined that the company concealed information regarding the troubled 737 MAX from regulators during its approval process. Since last year, Boeing’s stock has fallen by a staggering 57%, and given the worsening outlook of the pandemic’s affect on air travel, the company has a long recovery road ahead.


Information for this briefing was found via Boeing. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Tariffs Spark New Race for Critical Metals | Rob McEwen

Antimony Resources: The Bald Hill Project

They Laughed at $3,000 Gold, Now We’re Headed for $4,000! | Sean Roosen – Osisko Development Corp.

Recommended

Steadright Begins Preliminary Economic Assessment On TitanBeach Project

Three Miners Trapped Underground At Newmont’s Red Chris Mine

Related News

FAA Identifies Potentially Fatal Faults in 300 Boeing Planes Used by United, American Airlines

Boeing (NYSE: BA) has been hit with another significant safety issue, affecting approximately 300 aircraft...

Saturday, May 25, 2024, 01:32:00 PM

Boeing Engineers Warned OceanGate About Submarine Design Flaws Before Implosion

Documents and expert testimonies have allegedly surfaced revealing significant concerns raised by engineers involved in...

Wednesday, June 12, 2024, 12:31:00 PM

What Is Going On With Boeing Planes?

Kevin Clarke was aboard United Flight 354 when he witnessed a Boeing (NYSE: BA) 757-200’s...

Thursday, February 22, 2024, 03:55:00 PM

Boeing Leaves Two Astronauts Stuck In Space

Boeing Co.‘s (NYSE: BA) problems aren’t limited to its planes. NASA has postponed the return...

Wednesday, June 26, 2024, 11:10:00 AM

Boeing Agrees to Pay $200 Million SEC Fine Over Misleading Investors About 737 Max

The SEC charged Boeing Co. (NYSE: BA) and its former CEO Dennis Muilenburg with intentionally...

Friday, September 23, 2022, 02:36:18 PM