American aircraft manufacturer Boeing, which had 160,000 employees before the crisis, announced that the work force will decrease to 130,000 by the end of 2021.
At the end of April Boeing had already announced that it would cut its workforce by 10%. Thus, a total of 30,000 people (or 20%) will be leaving Boeing.
The company reported a $ 466 million loss for the third quarter of 2020, while CEO Dave Calhoun announced the decision in an article for employees.
CEO Calhoun said:
”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. ”
In addition to the Covid-19 crisis, the flight ban for the 737 Max model also forced Boeing to decrease the production level significantly. The manufacturer delivered 28 commercial aircraft to its customers in the third quarter of 2020.
The flight of 737 Max was banned worldwide in March 2019 after 2 major fatal accidents.
