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Bad News Boeing: Here Come More Production Cuts and Layoffs

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That's reportedly the number of commercial airplanes sitting parked around the world amid the coronavirus pandemic and stunning drop-off in air travel.

Unfortunately for Boeing  (BA) - Get The Boeing Company Report, that means little demand for new, shiny jetliners from carriers in the near future, which in turns is prompting the embattled plane maker to cut production of its 787 Dreamliner in half, and lay off thousands of workers.

The Chicago-based manufacturer is expected to detail production changes to its commercial lineup, including scaling back 787 Dreamliner production by half, and also announce staff layoffs and buyouts, when it reports its first-quarter earnings next week.

The scale-back in production as well as the workforce cuts come as Boeing continues to face unprecedented pressure from the coronavirus pandemic’s impact on the global airline industry and drop-off in both personal and business air travel.

Still reeling from the prolonged grounding of its 737 MAX following two fatal crashes, Boeing earlier this month announced voluntary buyout offers for its roughly 160,000 employees, which CEO David Calhoun said would help avoid “other workforce actions.”

The U.S. plane manufacturer faces added strain from maintaining 400 or so newly built 737 MAX jets that are stuck in storage until regulators lift the grounding order. 

The production and staff cuts are expected to be officially revealed when Boeing reports its first-quarter earnings next week.

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