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Boeing recommences 737 MAX production after over 12,000 layoffs

Author : Pankaj Singh | Published Date : 2020-05-29 

Chicago based aerospace corporation Boeing has apparently decided to recommence the production of its 737 MAX aircraft after recently announcing over 12,000 job cuts in the Seattle area. The ongoing coronavirus pandemic has incurred the aircraft manufacturer a 90 per cent drop in air travels as compared to 2019.

Owing to its deadly crashes and citing safety concerns, the Boeing 737 MAX has been grounded since March 2019. As per sources, Boeing has planned to lay off 6,770 workers in the U.S. in the current week and another 5,520 employees in the coming weeks. The layoffs come after Boeing had earlier announced to cut around 10 per cent of its workforce.

According to a Boeing spokesperson, the company has been on its way to plan additional layoffs including thousands of job cuts in the coming months. This layoff will be concentrated in the Seattle region which houses the company’s airplane campus.

Dave Calhoun, the CEO of Boeing, has stated that the recent cuts are attributed to a decline in the air travel demand. He has further added that the defense and space wing of Boeing’s business will continue to remain unaffected.

For the record, Boeing had already been on a downslide even before the COVID-19 outbreak due to the crash of its two 737 MAX aircrafts. This has caused a considerable downtrend in the company’s share price from trading above $ 400 in March 2019 to as low as $ 95 in March 2020.

 Boeing intends to recertify its 737 MAX aircraft equipped with modified flight control systems and plans to re-induct it into service.

About Boeing

The Boeing Company is a multinational aerospace corporation known for design, manufacture, and sale of airplanes, rockets, and missiles across the world. The company has its headquarters in Chicago and is a leading provider of leasing and product support services. Its subsidiaries include United Launch Alliance, Boeing Commercial Airplanes, Jeppesen, Insitu, and others.

 

Source Credits:

https://www.forbes.com/sites/nicholasreimann/2020/05/27/boeing-resumes-737-max-production-after-announcing-over-12000-job-cuts/#7a4e167f5fcf

About Author

Pankaj Singh

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

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