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Boeing posts net loss for second straight quarter, unveils plans to cut its workforce by about 10%

Boeing Co (NYSE:BA) has reported a net loss for the second straight quarter and unveiled plans to cut its workforce by about 10%, further reduce 787 Dreamliner production and try to boost liquidity as the coronavirus pandemic impacts business.

However, the aircraft maker said it was confident of getting sufficient liquidity to fund its operations, sending its shares higher. In morning trade in New York, Boeing shares were up 5% to $138.10.

The group said the majority of job cuts will be at its commercial aircraft division, where the firm already has a production freeze after the year-long grounding of the 737 MAX jetliner following two fatal crashes.

It added that 737 MAX production will resume at low rates in 2020 as timing and conditions of return to service are better understood and gradually increase to 31 per month during 2021, with further gradual increases to correspond with market demand. The group said its assumed timing of 737 MAX regulatory approvals will enable deliveries to resume during the third quarter.

Boeing said it plans to cut production of the bigger 787 jet to 7 units per month by 2022. Earlier this year, the company revised the production target down to 10 aircraft per month in early 2021, having said in October last year that the 787 production rate would reduceRead More – Source