Dave Calhoun, the CEO of Boeing, stated that the manufacturer would cut much more staff by the end of 2021 than it was considered earlier in 2020. The announcement came as an unpleasant consequence following the company’s financial results of Q3 2020.
Calhoun announced that due to a deep net loss of $466 million in the third quarter of 2020, Boeing was forced to slash 30,000 more jobs than it was planned in April 2020.
In an official note to its employees, released on October 28, 2020, the CEO of Boeing deplored that the company’s airline customers were desperate to save cash and this strongly resulted in a severe drop in demand for the manufacturer’s production.
„As we share our third-quarter financial results today, the deep impacts of COVID-19 on the commercial aviation market and our business are reflected in lower revenue, earnings, and cash flow compared to this time last year. Our overall business continuity efforts and the diversity of our customer base, including our government, defense and space customers, provided some relief as we made difficult decisions and delivered on our commitments“, wroteCalhoun in a note.
„As we align to market realities, our business units and functions are carefully making staffing decisions to prioritize natural attrition and stability in order to limit the impact on our people and our company. We anticipate a workforce of about 130,000 employees by the end of 2021,“ added the CEO.
By cutting more jobs, Boeing looks for further chances to reduce costs as a recovery of the COVID-19 to the airline industry is expected to take longer than the manufacturer forecasted.
Earlier in April 2020, at the beginning of the COVID-19 pandemic, Boeing announced it would cut 10% of its staff of 160,000 employees. The measure was taken in response to a shrinking market and canceled aircraft orders as airlines worldwide were struggling with a plunge in demand for air travel.