Boeing decreases output, sees 19,000 lost jobs on sagging airline demand

Boeing Co. delayed the debut of its newest plane and slowed production across the heart of its jetliner lineup as the company burned more cash amid the coronavirus pandemic

The planemaker intends to make deeper cuts to its commercial-aircraft and services business, with total job losses reaching 19,000 this year — 3,000 more than it said before. The new 777X won’t carry passengers until 2022 instead of next year. And Boeing again pared production plans for the 787 Dreamliner as a saturated market left the company with a stockpile of undelivered jets.

With the reduced manufacturing rates for the 787, Boeing is studying whether to consolidate assembly in a single site instead of building the model in Washington state and South Carolina. Boeing will also ramp up work at its 737 Max factory more gradually than initially planned due to the virus. And the company is winding down one of its most iconic aircraft: the humpbacked 747 jumbo jets.

Executives are trying to resize operations for a market shrunken by the virus outbreak — but without cutting so deeply that Boeing’s recovery is damaged later this decade. The pandemic’s devastating effect on the outlook for jetliner sales is compounding the financial stress from the 737 Max, Boeing’s best-selling jet, which has been grounded since March 2019 after two deadly crashes.

“This is a true business transformation effort,” Chief Financial Officer Greg Smith said on a call with analysts to discuss Boeing’s earnings.

Boeing had previously announced a 10% workforce reduction, or approximately 16,000 jobs. The total cut will still be about one-tenth of employees since Boeing is hiring for its defense and space business.