Boeing Co slashed production on its widebody programs, delayed the arrival of its newest jet, and confirmed the demise of its iconic 747, as it reported a bigger-than-expected quarterly loss on Wednesday amid fallout from the COVID-19 pandemic.
) slashed production on its widebody programs, delayed the arrival of its newest jet, and confirmed the demise of its iconic 747, as it reported a bigger-than-expected quarterly loss on Wednesday amid fallout from the COVID-19 pandemic.
The outbreak has crippled passenger travel and pushed major airlines to the brink of bankruptcy, resulting in many carriers deferring aircraft deliveries. The 737 MAX grounding has cost Boeing some $20 billion, ousted executives, halted production and hobbled its supply chain, with criminal and congressional investigations and lawsuits still ongoing.Boeing will now reduce 787 production to six jets a month in 2021 - a third rate drop from a year ago, when it was producing the Dreamliners at a record monthly rate of 14 planes.
Boeing’s commercial airplanes operating profit was hit by $845 million in abnormal production costs on 737 and factory closures related to COVID-19 fears. Boeing also logged $468 million in severance expenses related to reducing its roughly 160,000 workforce by 10%, saying on Wednesday deeper cuts were possible.“We’ll have to further assess the size of our workforce,” Calhoun told employees in a memo on Wednesday, lower production and demand.
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