Boeing is to fire 7,000 more employees due to Corona-crisis
Boeing is planning to cut 7 thousand more jobs by the end of 2021, as it has been reported. The reason is a dramatic drop in revenues and ongoing waves of pandemics, which is fought in many countries by closing borders, which severely impacts the air flight business. So, 2021 will end for Boeing with about 130 thousand employees, which is about 30 thousand job cuts during 2020 and 2021.
The 9-months revenue of the company in 2020 is over 14 billion, yet the second quarter of the year was ended with $0.47 billion losses. Revenues fell more than double compared to the previous year, which is not only the outcome of the pandemics but also of two crashes in 2019 of the 737 Max model, which killed around 350 people.
737 Max is planning to return to the skies, as Boeing has done significant progress in improving the model and receiving many approvals from the regulating bodies, which open the way to recertification of the plane.
The company says it is expecting the industry to recover to levels of 2019 in three years (in 2023-2024) but there are other prognoses made by market specialists, which predict that the market will never recover to the numbers of 2019.