London Daily

Focus on the big picture.
Thursday, May 28, 2026

Boeing to Cut 7,000 More Jobs in Jet Market’s ‘New Reality’

Boeing to Cut 7,000 More Jobs in Jet Market’s ‘New Reality’

Boeing Co. is deepening job cuts as the coronavirus pandemic and prolonged grounding of the 737 Max jetliner squeeze the planemaker’s finances.

An additional 7,000 jobs are slated for elimination by the end of next year, bringing the total cuts made through retirements, attrition and layoffs to 30,000 people, Boeing said in an email Wednesday after reporting earnings. In all, the planemaker is cutting 19% of its pre-pandemic workforce after an unprecedented collapse in air travel and jetliner sales.

“We’re aligning to this new reality by closely managing our liquidity and transforming our enterprise to be sharper, more resilient and more sustainable for the long term,” Chief Executive Officer Dave Calhoun said in a statement.



Once a prodigious cash generator, Boeing is now carefully monitoring its liquidity and soaring debt while navigating the deep slump in air travel and working with regulators to lift the Max’s flying ban. Boeing has burned through about $22 billion in free cash since March 2019, when regulators grounded the company’s best-selling jet after two fatal accidents.

Boeing fell 2.6% to $151.25 at 10:12 a.m. in New York amid broad market declines. The shares tumbled 52% this year through Tuesday, the biggest decline among the 30 members of the Dow Jones Industrial Average.

The Chicago-based company consumed about $5 billion in free cash during the third quarter, in line with analyst estimates and about $620 million less than a quarter earlier, when the pandemic forced the company to temporarily shut down much of its manufacturing. Boeing didn’t announce additional production cuts for its 787 and 737 Max, defying analyst expectations, and also got a $459 million income tax boost.

“While losing money and burning through over $5 billion in three months is hardly good news, at least it wasn’t worse than this,” Robert Stallard, an analyst at Vertical Research Partners, said in a report.

Max Plans


Calhoun and Chief Financial Officer Greg Smith will discuss Boeing’s results in a conference call at 10:30 a.m. Eastern time. They are expected to provide more detail on whether the company still expects to generate cash next year as it delivers hundreds of parked 737 Max.

Boeing reported an adjusted loss of of $1.39 a share, better than the average shortfall of $2.08 expected by analysts. Sales dropped 29% to $14.1 billion. Wall Street had predicted $13.8 billion.

Analysts are already looking ahead to 2021 and Boeing’s plans to clear its storage lots of around $16 billion of Max planes built during the grounding. Rising coronavirus cases are heaping additional pressure on airlines, which have leverage to scrap or renegotiate terms for Max jets with deliveries delayed more than a year.

Boeing’s affirmation of its plan to build 31 of its single-aisle aircraft each month by early 2022 “suggests either (1) confidence in getting customers to accept most of the 450 Maxes in inventory for delivery in 2021 or (2) willingness to take longer to pare the Max inventory,” said Cai von Rumohr, an analyst at Cowen & Co.

Airbus Production


Airbus SE, which reports earnings Thursday, has also been buffeted by the pandemic. But the European planemaker has seen fewer cancellations for its narrow-body jets than Boeing, and has even signaled suppliers to be prepared to raise production rates late next year if the market rebounds.

Questions are building as to how Boeing will counter a product lineup that includes Airbus A321neo jetliners -- particularly longer-range versions of the narrow-body jet that are capable of replacing wide-body aircraft on trans-Atlantic routes.

While Boeing provides more detail on its tactics for cutting costs to survive the pandemic, analysts are starting to question its longer-term strategy and vision for the market that will emerge on the other side of the crisis.

“We need to start thinking about how the company is going to look coming out of this,” said Ken Herbert, an analyst with Canaccord Genuity,

Comments

Oh ya 6 year ago
Well between building planes that fall out of the sky and a world slowdown this is the new normal,

Newsletter

Related Articles

0:00
0:00
Close
Global Crude Prices Retreat Below $96 as Gulf Tensions Momentarily Ease
Generative AI Outperforms Human Baselines in Landmark Global Creativity Study
NASA Partners With Private Aerospace to Unveil Permanent Lunar Base Architecture
South Korean Equity Markets Surge on Next-Generation Memory Chip Frenzy
U.S. Treasury Yields Slip as Energy-Driven Inflation Anxiety Cools
Extreme Spring Heatwave Blankets Europe Raising Summer Climate Alarms
European Union Faces Widespread Local Backlash Over Mega Data Centers
Washington Prepares Cuba Contingency Plans Amid Escalating Havana Pressure
U.S. Maintains Strategic Trade Tariffs Despite Advancing International Pacts
Canada Defies U.S. Defense Contractors With Swedish Arctic Surveillance Fleet Purchase
Wall Street Hovers Near Record Highs as Retail Sector Defies Inflation Constraints
Caesars Entertainment Agrees to $17.6 Billion Acquisition by Fertitta
White House Accelerates Infrastructure Security Following Violent Incidents
Prediction Market Legal Battles Escalate as Kalshi Sues Minnesota
World Health Organization Issues High Alert on Mutating Avian Influenza
'They're people from all walks of life across the UK'
EU Digital ID Claims Misstate What Brussels Can Legally Force on Member States
The Great Western Exit: Why Best Citizens Are Fleeing the Rich World [PODCAST]
The New Robber Barons of Intelligence: Are AI Bosses More Powerful Than Rockefeller?
The End of the Old Order [Podcast]
Britain’s Democracy Is Now a Costume
The AI Gold Rush Is Coming for America’s Last Open Spaces [Podcast]
The Pentagon’s AI Squeeze: Eight Tech Giants Get In, Anthropic Gets Shut Out [Podcast]
The War Map: Professor Jiang’s Dark Theory of Iran, Trump, China, Russia, Israel, and the Coming Global Shock [Podcast]
Labour Is No Longer a National Party [Podcast]
AI Isn’t Stealing Your Job. It’s Dismantling It Piece by Piece.
Lawyers vs Engineers: Why China Builds While America Litigates [Podcast]
Churchill’s Glass: The Drunk, the Doctor, and the Myth Britain Refuses to Sober Up From
Apple issues an unusual warning: this is how your iPhone can be hacked without you doing anything
Kennedy’s Quiet War on Antidepressants Sparks Alarm Across America’s Medical Establishment
The Met Gala Meets the Age of Billionaire Backlash
Russian Oligarch’s Superyacht Crosses Hormuz via Iran-Controlled Route
Gunfire Disrupts White House Correspondents’ Dinner as Trump Is Evacuated
A Leak, a King, and a Fracturing Alliance
Inside the Gates Foundation Turmoil: Layoffs, Scrutiny, and the Cost of Reputational Risk
UK Biobank Breach Exposes Health Data of 500,000, Listed for Sale on Chinese Platform
KPMG Cuts Around 10% of US Audit Partners After Failed Exit Push
French Police Probe Suspected Weather-Data Tampering After Unusual Polymarket Bets on Paris Temperatures
CATL Unveils Revolutionary EV Battery Tech: 1000 km Range and 7-Minute Charging Ahead of Beijing Auto Show
Crypto Scammers Capitalize on Maritime Chaos Near the Strait of Hormuz: A Rising Threat to Shipping Companies
Changi Airport: How Singapore Engineered the World’s Most Efficient Travel Experience
Power Dynamics: Apple’s Leadership Shakeup, Geopolitical Risks in the Strait of Hormuz, and Europe's Energy Strategy Amidst Global Challenges
Apple's Leadership Transition: Can New CEO John Ternus Navigate AI Challenges and Geopolitical Pressures?
Italy’s €100K Tax Gambit: Europe’s Soft Power Tax Haven
News Roundup
Microsoft lost 2.5 millions users (French government) to Linux
Privacy Problems in Microsoft Windows OS
News roundup
Péter András Magyar and the Strategic Reset of Hungary
Hungary After the Landslide — A Strategic Reset in Europe
×