Beautiful Virgin Islands

Tuesday, Jul 14, 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,

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Netflix Weighs Always-On Channels, Bundles and Short-Form Video
Passenger Is Pulled Partly Outside Ryanair Jet After Window Fails Mid-Flight
The AI Invoice Shock: Layoffs Didn't Save Managers Money — They Cost Them More
Concern: Sexually Transmitted Bacterium Among Men Develops Antibiotic Resistance
Following Massive Investor Demand: SK Hynix Raises 26.5 Billion Dollars on Nasdaq
Passenger Partially Pulled Out of Ryanair Jet After Cabin Window Fails Mid-Flight
After Four Years, and Under a Heavy Veil of Secrecy: King Charles Meets His Grandchildren, Harry and Meghan's Children
Severe Heatwave Drives Dangerous Ground-Level Ozone Pollution Across Two Thirds of European Union
Westminster in Freefall as Farage's By-Election Gamble Triggers Broader Systemic Crises
Institutional Fractures and Political Volatility Reshape Britain's Domestic Landscape
Deadly Fire, Health Emergencies and Political Upheaval Shape a Volatile Global News Cycle
Flight Instructor Jumped to His Death — Student Landed the Plane: "You Know What You Need to Do"
The Physical and Electronic Barriers Disrupting Domestic Wireless Networks
France and Morocco Open World Cup Quarter-Finals as Collina Defends Refereeing
Prince Harry Suffers Major Court Defeat in Legal Battle Against Daily Mail Publisher
Bonnie Tyler, Welsh Singer Behind Total Eclipse of the Heart, Dies at 75
Tech Pulse: The Future of AI and Screen Culture
Global News Briefing: Escalating Geopolitical Tensions and Corporate Shakeups
Global News Brief: Escalating Conflicts, Public Health Crises, and World Cup Drama
Federal Financial Framework Shifts as Treasury Launches Universal Savings Program for Minors
French Court Allows Le Pen to Run for Presidency, but with an Electronic Tag: "I Will Appeal, and I Will Run"
$1.4 Trillion: The Lawsuit That Could Crush Meta
Europe's Growing Struggle with Extreme Heat and Air Conditioning
UK Daily Briefing: Legal Developments and Social Issues
Political Turmoil and Rising Costs
Anthropic Reengineers Agentic Architecture to Shift Autonomous Workplace Automation to the Cloud
Logic Flaw in Windows 11 Permission Architecture Silently Consumes Hundreds of Gigabytes of Local Storage
Apple Advances Late-Stage Operating Systems with Fourth Beta Deployments
Global Crisis Alert: Escalating Middle East Tensions and UK Political Upheaval
Deep Purple Has Released Its Best Album in Decades
Microsoft Lays Off 4,800 Employees and Xbox Suffers the Hardest Blow
Morocco and France Advance as 2026 FIFA World Cup Enters Quarterfinals.
Historic 2026 Tour de France Opens in Barcelona With Revamped Team Time Trial.
Global Mergers and Acquisitions Approach $4 Trillion Defying Geopolitical Tumult.
Negotiators Advance 20-Point Framework for Gaza Ceasefire and Demilitarization.
OECD Warns Middle East Conflict Will Depress Global Economic Growth.
Ukrainian Drones Strike Major Oil Terminal in St. Petersburg.
World Meteorological Organization Issues Urgent Alert Over Rapidly Intensifying El Niño.
United States Commemorates 250th Anniversary With Diplomatic Summits and Global Flotilla.
Iran Begins Days-Long Funeral for Supreme Leader Khamenei Amid Strait of Hormuz Standoff.
Technology giant reports surging carbon emissions driven by artificial intelligence infrastructure demands.
Artificial intelligence adoption accelerates workforce reductions across the technology and financial sectors.
Global technology and financial conglomerates collaborate to launch a new stablecoin standard.
United States regulators lift export restrictions on a major frontier artificial intelligence model.
Luxury bags take over the World Cup: style, status symbol, or just showing off?
×