Boeing to cut workforce by 10%

paris — Boeing said on Wednesday it would cut its workforce by about 10 per cent and further reduce 787 Dreamliner production after reporting a loss for the second straight quarter as the coronavirus pandemic hits global travel demand.

Its stock was up 5.4 per cent at $138.34 in premarket trading.

Chicago-based Boeing said it was confident of getting sufficient liquidity to fund its operations, sending its shares up 5.4 per cent in premarket trading. Reuters reported on Tuesday that it is working with investment banks on a potential bond deal worth at least $10 billion.

Last month it drew down its entire $13.8 billion credit line and is also weighing seeking government aid.

As coronavirus took hold, Boeing was already grappling with a production freeze and year-long grounding of the 737 MAX following two fatal crashes.

In January, Boeing CEO Dave Calhoun had said production of the MAX could resume by April ahead of its forecasted mid-year return to service, but the health crisis has put those timelines into question. Boeing said on Tuesday that 737 MAX production will resume at low rates in 2020 as timing and conditions of return to service are better understood and gradually increase to 31 per month during 2021, with further gradual increases to correspond with market demand.

Reuters reported on Tuesday approval is not expected until at least August and could be pushed back later.

Boeing said it plans to cut production of the bigger 787 jet to seven units per month by 2022. —