Boeing to cut 7,000 more jobs as hopes for cash comeback fade

Boeing is almost doubling its planned job cuts as the coronavirus pandemic and prolonged grounding of the 737 Max jet dim prospects for a financial recovery next year. With the outlook for aircraft sales still uncertain, executives abandoned a forecast that Boeing would stop burning cash next year and said they would eliminate an additional 7,000 jobs. That will bring the expected loss from layoffs, retirements and attrition to 30,000 people by the end of 2021 -- or 19% of the pre-pandemic workforce. Boeing announced a 10% cut earlier this year. The planemaker is “taking tough but necessary action to adapt to the new market reality and transform our business to be sharper and more resilient for the long term,” CEO Dave Calhoun told analysts after the company reported earnings. “Covid-19’s continued impacts have had a more prolonged and deeper impact on our industry, and we’ll have to further reduce our workforce.” Once a prodigious cash generator, Boeing is now carefully monitoring its liquidity and soaring debt while navigating the deep slump in air travel and working with regulators to lift the Max’s flying ban. Boeing has burned through about $22b in free cash since March 2019, when regulators grounded the company’s best-selling jet after two fatal accidents. The cash outflow will probably continue until 2022, said CFO Greg Smith. Story has more details.<br/>