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May 27, 2020, 5:28 p.m. EDT

Boeing to lay off nearly 7,000 workers, resumes 737 Max production

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By Claudia Assis

BA

Shares of Boeing Co. /zigman2/quotes/208579720/composite BA +2.53% jumped more than 5% in the extended session Wednesday after the jet maker announced the layoffs of 6,770 U.S. workers, with the first employees affected being notified this week. International locations also are planning layoffs that will be announced on their own timelines, Boeing said. "The COVID-19 pandemic's devastating impact on the airline industry means a deep cut in the number of commercial jets and services our customers will need over the next few years, which in turn means fewer jobs on our lines and in our offices," Boeing said. Boeing said it is seeing "green shoots" after the devastation wrought by the virtual halt on air travel, but the industry will take "some years to return to what it was just two months ago." Some of its airline customers report that "reservations are outpacing cancellations on their flights for the first time since the pandemic started," Boeing said. Some of its businesses, such as defense, will continue hiring, the company said. In a separate press release, the company announced it was resuming production of its 737 Max aircraft in Renton, Wash. The program restarted at a low rate as the company implements safety and product quality checks, it said. Boeing halted the 737 Max production in January. Production "will gradually ramp up" this year, the company said. The 737 Max has been grounded worldwide following two deadly crashes less than five months apart that were linked to a faulty anti-stall system. Shares of Boeing ended the regular trading day up 3.3%.

/zigman2/quotes/208579720/composite
US : U.S.: NYSE
$ 209.49
+5.17 +2.53%
Volume: 3.86M
Jan. 19, 2021 10:41a
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$115.34 billion
Rev. per Employee
$475,227
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