Boeing said on Wednesday that it will layoff staff and cut production after recording a major loss in the first quarter as pandemic hit the air travel industry.
Air travel demand evaporated during a coronavirus outbreak, and the airline continues to slip from the 737 Max grounding.
The company announced that it would cut 10% of its jobs, about 16,000 jobs, through a combination of involuntary layoffs, acquisitions, natural attrition.
The cuts will be steep in Boeing's commercial aircraft unit, which will lose about 15% of jobs. Boeing also said it would significantly reduce the production of the 787 Dreamliner and 777 wide passenger aircraft.
"The demand for commercial airline travel has fallen off a cliff. The pandemic is also delivering a body blow to our business," Boeing CEO Dave Calhoun said.
"The company lost $ 1.7 billion in its core operations, slightly worse than Wall Street had anticipated," he added.
Boeing was hit by both the 737 MAX grounding as well as cancelations of new aircraft orders due to the epidemic.
Meantime, the shutdown of its factories in Washington, due to precautionary measures, cost the company about $ 137 million.
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