ST. LOUIS — Airplane maker The Boeing Co. (NYSE: BA) said Wednesday it will cut 10% of its global workforce, as orders meant to deal with the COVID-19 pandemic continue to dry up demand for air travel. It employed more than 14,000 people in the St. Louis area as of April 2019, through its defense unit.
The Chicago-based giant said it was cutting production of the 787 Dreamliner, 777 and 777X. It also intends a long, slow ramp-up of production when the beleaguered 737 Max is again allowed to fly.
"The pandemic is delivering a body blow to our business — affecting airline customer demand, production continuity and supply chain stability," CEO Dave Calhoun said in a statement. He said airlines are delaying purchases for new jets and deferring elective maintenance.
The jobs cuts will come through voluntary layoffs, turnover and involuntary layoffs, the company said.
"That is 10% in total for the enterprise," Calhoun said. "We'll have to make even deeper reductions in areas that are most exposed to the condition of our commercial customers — more than 15% across our commercial airplanes and services businesses, as well as our corporate functions."
He added that "the ongoing stability of our defense, space and related businesses will help us limit the overall depth of the cut."
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