New Delhi: US-based airplane manufacturer Boeing announced plans to lay off 10 per cent of its current workforce equalling roughly 17,000 staffers. The jet maker is struggling to keep its finances in order amid piling losses and a decline in production amid a continuing workers’ strike.
Boeing CEO Kelly Ortberg informed staffers about the layoffs in an internal memo dated October 11, 2024. Boeing’s current global headcount stands at 170,000.
Boeing headcount and earnings
The company has major factories in Washington and South Carolina. Boeing is the world’s 4th largest defence contractor, according to 2022 revenue data. Boeing ended the second quarter of FY25 with cash on books worth $12.6 billion and was saddled with a debt worth $58 billion.
The company may have to raise nearly $30 billion before it can develop an aircraft, Reuters reported, citing a Wells Fargo report which downgraded Boeing’s stock. The company’s $10 billion annual free cash flow target is likely to be delayed until 2027-28, the newswire reported.
Boeing share price history
Boeing’s share price rose 3 per cent to $151.02 apiece on Friday after the job cut announcement. The company’s share price was down 2.84 per cent in the past 5 days. In the past month, Boeing’s share price dove 7.22 per cent. The aeronautical giant’s stock value plunged 10.93 per cent in the past 6 months. In the past year, Boeing’s share price declined by 21.06 per cent, according to NYSE data.
US-based jetmaker Boeing has a cash problem amid a spate of controversies and protests which have forced the company to announce drastic cut jobs. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
