American aircraft giant Boeing plans to cut production. In connection with its earnings announcement, the company said it plans to lay off ten percent of its workforce due to the interest rate crisis.
Boeing reported a $ 641 million loss for the first quarter on Wednesday. The company is reducing its production as the aviation market is frozen due to the interest rate pandemic.
The aircraft manufacturer’s problems began just over a year ago when Ethiopian Airlines ’Boeing 737 MAX 8 passenger plane crashed into the ground shortly after takeoff near Addis Ababa. Circus was a half-year in the second 737 MAX for occurred, and it resulted in this type of aircraft flight ban.
The corona pandemic has exacerbated Boeing’s problems as countries have closed their borders and flights have been canceled to slow the spread of the coronavirus.
The company reported a loss of $ 1.70 per share for the first quarter of the year when Refinitivin the analyst forecast posted a $ 1.61 loss.
Boeing’s revenue fell 26 percent from the comparison period to $ 16.91 billion, while analysts forecast revenue of $ 17.30.
The company's share was up 7.6 percent on Wednesday at 21:48 Finnish time.
According to Boeing, it plans to lay off about 10 percent of its workforce in the aerospace industry, with employees resigning voluntarily as well as “dismissal if necessary”. Boeing had about 160,000 employees at the end of last year.
“We need to further reduce our workforce in our commercial business,” the company’s CEO Dave Calhoun commented in connection with the announcement of results.
Calhoun commented to CNBC that the global aviation market is “currently frozen” due to the corona pandemic.