on Wednesday posted a $641 million loss in the first quarter and is planning to cut its workforce and aircraft production in a world aviation market "frozen" by the coronavirus pandemic.
"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," CEO Dave Calhoun said in a staff memo. Calhoun later told reporters "higher percentages [of cuts] will be from the white collar world."
Calhoun told CNBC the world's aviation market is "frozen" because of the virus and that "the industry is not interested in taking delivery of aircraft at the moment." Calhoun added that it appeared "the thaw is beginning," but he did not elaborate. With air travel in the U.S. down 95% from a year ago, Calhoun told shareholders on Monday it likely would taketo 2019 levels, a sharp turnaround for an industry that just earlier this year was betting on continued growth.
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Let’s hope so!!
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