Boeing Plans to Cut More Jobs and Production, Amid Pandemic
The Boeing Company continues to take a hit due to the COVID-19 pandemic and the grounding of its 737 MAX. Boeing released its Second Quarter (Q2) results on Wednesday, with $11.8 billion in revenues, a 25% decrease from the same time period in 2019. Net loss was approximately $2.4 billion, and GAAP loss per share was $4.20.
Boeing’s Defense, Space & Security department reported Q2 revenues of about $6.6 billion, in line with Q2 2019. The company said this reflects the impact of COVID-19 on derivative aircraft programs.
Boeing is taking further action to adjust its commercial airplane production rates and reduce employment levels. The company also said that in Q2, it resumed early stages of production on the 737 program and made progress toward the return to service of the 737, including completion of FAA certification flight tests.
“The diversity of our balanced portfolio and our government services, defense and space programs provide some critical stability for us in the near-term as we take tough but necessary steps to adapt for new market realities,” President and CEO Dave Calhoun said. “We are taking the right action to ensure we’re well positioned for the future by strengthening our culture, improving transparency, rebuilding trust and transforming our business to become a better, more sustainable Boeing. Air travel has always proven to be resilient — and so has Boeing.”