Boeing To Cut Thousands More Jobs as Pandemic Hits Aircraft Demand

Seattle, WA Aug 25, 2017 - The first 787 Dreamliner on display at the Boeing Museum of Flight.
Alex JW Robinson / Shutterstock.com

The air travel industry continues to suffer the effects of the pandemic, with Boeing being the latest company to announce another round of layoffs. On Wednesday, the aircraft manufacturer said it has plans to cut 7,000 more jobs. This news comes just a few months after Boeing announced that it would be slashing 19,000 jobs in 2020.  

“As we align to market realities, our business units and functions are carefully making staffing decisions to prioritize natural attrition and stability in order to limit the impact on our people and our company,” Boeing CEO Dave Calhoun said in a note sent to employees. “We anticipate a workforce of about 130,000 employees by the end of 2021. Throughout this process, we will communicate with you every step of the way.”

Though the COVID-19 pandemic, which has caused a major decline in jetliner demand, plays a key role in the layoffs, it’s not the only reason Boeing is in crisis mode — or even the main reason. The regulatory ban on Boeing’s 737 Max, put into effect in March 2019 after two crashes killed 346 people, has actually been the bigger problem for the company. With the ban in place, Boeing is unable to deliver planes to many customers. Though American Airlines — mired in its own financial woes and layoffs —  has the 737 Max in its schedule for several flights in the near future, other customers don’t expect to fly it until next year, CNBC reported.

As struggles continue, see how the top airlines have fared.

More From GOBankingRates

Make Your Money Work for You
Sponsors of

About the Author

Nicole Spector is a writer, editor, and author based in Los Angeles by way of Brooklyn. Her work has appeared in Vogue, the Atlantic, Vice, and The New Yorker. She’s a frequent contributor to NBC News and Publishers Weekly. Her 2013 debut novel, “Fifty Shades of Dorian Gray” received laudatory blurbs from the likes of Fred Armisen and Ken Kalfus, and was published in the US, UK, France, and Russia — though nobody knows whatever happened with the Russian edition! She has an affinity for Twitter.