BOEING: $2.4 billion losses over the past three months

Boeing lost $2.4 billion over the past three months, the company revealed Wednesday. It’s just the latest sign of trouble for the aerospace giant as it continues to grapple with the fallout over its beleaguered 737 Max aircraft and the COVID-19 pandemic.

SOURCE: CNN

In a note to employees, Boeing CEO Dave Calhoun said that the “prolonged impact” of the virus will require the company to “further assess the size of our workforce,” signaling Boeing will cut more jobs than the 16,000 — about 10% of its workforce — it previously announced.

Wall Street wasn’t shocked by the numbers. Investors already knew Boeing’s deliveries 10 jets last month as it began ramping up production after its factory was shuttered by the pandemic.

But Calhoun also revealed that Boeing is planning to further scale back production of all its commercial jets and, potentially, shuttering entire assembly lines of its 787 Dreamliner jets.

“We will also need to evaluate the most efficient way to produce the 787, including studying the feasibility of consolidating production in one location,” Calhoun said. He declined to share further details with reporters. Boeing manufactures the 787 Dreamliner at a dedicated facility in Charleston and at the company’s massive plant near Seattle.

Boeing is now looking to produce just six 787s per month in 2021, according to the company, down from the current rate of 10 per month. Boeing is also planning to reduce its monthly output of 777 widebody aircraft to two per month, down from five.

The company is still in the early stages of resuming production of its 737 Max jets, which was Boeing’s best-selling aircraft but has been grounded since March 2019 following two crashes that killed 346 people.

But Boeing said Wednesday it would slow down its plans to ramp up that production as well. It’s aiming to produce 31 of those jets per month by 2022 — a target Boeing was expecting to hit next year. READ MORE HERE