Boeing's
Boeing's downward trajectory can be traced back to the 737 Max scandal that rocked the aviation industry and caused the company to take a significant reputation hit worldwide. The scandal began with the crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302, both of which were lost due to an undisclosed flight control system causing the planes to go out of control and the flight crews of both aircraft being unable to regain control. 737 Max jets were grounded worldwide, hundreds of orders were canceled, and according to Boeing, no new reservations have been placed for the infamous plane.
Boeing's
The impact of the scandal was exacerbated by the sudden onset of the coronavirus pandemic, which all but shut down global air travel and saw the company lose a substantial amount of income as orders dried up. Even as air travel slowly begins to pick back up, recovery is projected to go very slowly, with most estimates not seeing any substantial recovery for at least a few years.
The latest round of job cuts for the aerospace firm was confirmed on Wednesday, with the 6,670 involuntary and 5,520 voluntary cuts being the next step towards Boeing's plan of eliminating 16,000 positions worldwide. The majority of the cuts are in the company's American facilities, though 400 cuts were announced for the firm's plant in Canada, and 230 in Australia. Additional layoffs are expected in the coming months.
The latest round of job cuts for the aerospace firm was confirmed on Wednesday, with the 6,670 involuntary and 5,520 voluntary cuts being the next step towards Boeing's plan of eliminating 16,000 positions worldwide. The majority of the cuts are in the company's American facilities, though 400 cuts were announced for the firm's plant in Canada, and 230 in Australia. Additional layoffs are expected in the coming months.
"[The] 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. ... I wish there were some other way." Said CEO David Calhoun in an email to employees.
Boeing's downward trajectory can be traced back to the 737 Max scandal that rocked the aviation industry and caused the company to take a significant reputation hit worldwide. The scandal began with the crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302, both of which were lost due to an undisclosed flight control system causing the planes to go out of control and the flight crews of both aircraft being unable to regain control. 737 Max jets were grounded worldwide, hundreds of orders were canceled, and according to Boeing, no new reservations have been placed for the infamous plane.
Boeing's downward trajectory can be traced back to the 737 Max scandal that rocked the aviation industry and caused the company to take a significant reputation hit worldwide. The scandal began with the crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302, both of which were lost due to an undisclosed flight control system causing the planes to go out of control and the flight crews of both aircraft being unable to regain control. 737 Max jets were grounded worldwide, hundreds of orders were canceled, and according to Boeing, no new reservations have been placed for the infamous plane.
The impact of the scandal was exacerbated by the sudden onset of the coronavirus pandemic, which all but shut down global air travel and saw the company lose a substantial amount of income as orders dried up. Even as air travel slowly begins to pick back up, recovery is projected to go very slowly, with most estimates not seeing any substantial recovery for at least a few years.
The impact of the scandal was exacerbated by the sudden onset of the coronavirus pandemic, which all but shut down global air travel and saw the company lose a substantial amount of income as orders dried up. Even as air travel slowly begins to pick back up, recovery is projected to go very slowly, with most estimates not seeing any substantial recovery for at least a few years.
"[The] 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. ... I wish there were some other way." Said CEO David Calhoun in an email to employees.
"[The] 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. ... I wish there were some other way." Said CEO David Calhoun in an email to employees.
