Aviation giant Boeing reported on Wednesday that they will have to reduce its workforce by 10% through a combination of voluntary and involuntary layoffs, as well as production in order to manage growing debts.
Boeing employs 150,000 people worldwide and was already under pressure after having to ground its fleet of 737 Max planes.
In January, Boeing reported losses of $636m in 2019 down from $10.5bn the year before. First quarter losses have grown by a further $641m following the continued impact of coronavirus on the aviation industry.
“The aviation industry will take years to return to the levels of traffic we saw just a few months ago. We have to prepare for that,” Boeing CEO Dave Calhoun said in a letter to employees.
Calhoun has previously said, ‘We are in an unpredictable and fast-changing environment, and it is difficult to estimate when the situation will stabilize.
“But when it does, the commercial market will be smaller and our customers’ needs will be different. We know we are going to have to borrow more money in the next six months in order to get through.”