Boeing to shrink workforce, raise cash as coronavirus slams jet industry
BUSINESS NEWS APRIL 29, 2020 / 7:47 AM / UPDATED 18 MINUTES AGO
(Reuters) - Boeing Co (BA.N) said on Wednesday it would cut its 160,000-person workforce by about 10%, further reduce 787 Dreamliner production and try to boost liquidity as it prepares for a years-long industry recovery from the coronavirus pandemic that drove its second consecutive quarterly loss.
Boeing shares closed 5.9% higher to $139 after the company said it was confident of getting sufficient liquidity to fund operations and would have positive cash flow next year as it ramps up production of the grounded 737 MAX.
After the market close, S&P lowered its credit rating for Boeing to BBB-, one step above junk, saying that earnings and cash flow over the next few years are likely to be lower than it had previously expected due to the impact of the coronavirus.
Reuters reported on Tuesday that Boeing is working with investment banks on a potential bond deal worth at least $10 billion. Last month it drew down its entire $13.8 billion credit line and is also weighing seeking government aid.
https://www.reuters.com/article/us-boeing-results/boeing-to-shrink-workforce-raise-cash-as-coronavirus-slams-jet-industry-idUSKBN22B1N7?il=0
And this is going to add to the job loss report and other downside factors to the suppliers of the OEM.......and apparently they will not design a replacement model for the venerable 757 market..........
= new reply since forum marked as read
