Details of the production changes for Boeing’s commercial lineup are still being finalized and will determine the number of jobs to be eliminated through layoffs and buyouts, said the people, who asked not to be named as the discussions are confidential. The planemaker plans to lower the Dreamliner’s monthly output, which began the year at 14 jets, to a single-digit rate.
Dave Calhoun, Boeing’s chief executive officer, hinted that painful measures would be needed when he warned employees last month of a “new reality” with a far smaller jetliner market when the world emerges from the coronavirus pandemic. Global airline sales are projected to plunge by $314 billion this year, according to an industry trade group, and travel may not recover fully until mid-decade.
The forbidding landscape leaves Chicago-based Boeing with no easy decisions. Airbus SE, its European rival, has already announced plans to pare output by about a third. Both companies probably burned through record amounts of cash in the first quarter: 6.5 billion euros for Airbus and $8 billion for Boeing, according to calculations by Melius Research analyst Carter Copeland. (end of excerpt)
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