Boeing is bringing out the ax. The embattled aerospace giant is cutting staff and cutting production of planes as it burns cash.
Boeing has been battered on two fronts: the global pandemic that has slammed demand for air travel and the grounding of its best selling 737 MAX jets last year following two fatal crashes.
It said Wednesday it will cut payrolls by about 10%. The majority of that will come from its commercial airplane division, where quarterly revenue fell by nearly half. CEO David Calhoun himself will work without pay this year.
Boeing will also slash monthly production of its wide body planes, the 787 Dreamliner and 777, and it'll resume production of the narrow body 737 MAX this year at what it called "low rates."
The cost cutting announcements came as Boeing reported it lost money for the second straight quarter. It also disclosed that it burned through nearly $5 billion in cash but that was less than analysts had feared. Boeing said it's confident it'll get enough liquidity to fund its operations.
Investors cheered that, sending shares higher.