by Donald Wood
Last updated: 9:53 PM ET, Wed April 29, 2020
As a result of the coronavirus outbreak and the continued grounding of the 737 MAX fleet, Boeing announced it would be forced to cut staff and slash production.
According to NPR.com, a massive first-quarter financial loss and a drastic drop in air travel demand forced Boeing officials to cut around 10 percent of its workforce (16,000 employees) through buyouts, natural attrition and involuntary layoffs.
Boeing's commercial airplane unit took the hardest hit after it was announced production of the 787 Dreamliner and the 777 widebody passenger airplanes would be scaled back. The commercial unit also endured deep cuts to its staff, with around 15 percent of employees being let go.
"The demand for commercial airline travel has fallen off a cliff," Boeing CEO Dave Calhoun said in a statement. "The pandemic is also delivering a body blow to our business."
With more than two-thirds of the aircraft around the world not currently operating, passenger demand down by around 90 percent and orders for more planes being delayed, Boeing lost $1.7 billion from its core operations during the first quarter.
The announcement comes after the airplane manufacturer announced hopes to win regulatory approval in August for the 737 MAX's return to service, but the timeline could be pushed backed until fall due to the impact of the viral pandemic.
Earlier this week, Boeing shareholders have elected 12 members to its board of directors despite objections to almost half of them by proxy advisory firms.
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
