Boeing reports $641 million in Q1 losses, cutting 10% of workforce
Apr 29, 2020, 5:49 AM
Boeing's 1st quarter earnings report will spell cuts across the board. (AP Photo/Richard Drew)
(AP Photo/Richard Drew)
As expected, Boeing reported dismal first quarter earnings Wednesday, alongside sweeping cuts to both production and jobs.
Turbulence on the horizon for Boeing
Boeing posted its second straight quarterly loss today, reporting a $641 million net loss for the first three months of the year. The company blew through $4 billion in cash in the first quarter too.
Revenues for the quarter were $16.9 billion, a 26% loss over Q1 of 2019. It only delivered 50 commercial airplanes in the quarter, which is a 66% drop over last year.
The company announced it will reduce production on the 787 from 14 planes a month to 10 this year. It will drop that to seven a month by 2022. It expects to return to low levels of MAX production this year, with a bump to 31 a month next year. There are no changes expected in production on the 767 or 747. 777 production will be reduced to three a month.
Boeing slowly hits restart button in Washington
Voluntary layoff packages have been going out to those that will have the opportunity to take them. CEO David Calhoun says there could be a series of non-voluntary layoffs as well. In total, the company expects to cut roughly 10% of its total workforce.
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