Things are still not going well for the Boeing Company.
The airplane manufacturer announced late Friday that it had a difficult third quarter financially. The preliminary results were made after the market closed.
The ramifications include the elimination of the 767-freighter program, the delay of the already hampered 777X model and layoffs that could be in the five figures. The layoffs include management and workers and those already on furlough.
The 777X program was introduced 13 years ago.
In an email to Boeing staff, Kelly Ortberg, Boeing President and Chief executive Officer, wrote: “Our business is in a difficult position, and it is hard to overstate the challenges we face together. Beyond navigating our current environment, restoring our company requires tough decisions and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term.”
The moves come as a strike with its machinists union enters its second month. The company is said to be losing more than half a billion dollars each week.
Boeing officially reports financial results on October 23. It is expected to suffer a loss of nearly $10 a share. Its operating losses have led some to believe it is flirting with junk bond status. Junk bonds often hinder a company from borrowing capital.
Added Ortberg: “We know these decisions will cause difficulty for you, your families, and our team, and I sincerely wish we could avoid taking them. We will navigate through this moment. We will re-focus our company, and we will restore trust with all those who depend on us.”
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