Boeing to freeze hiring, overtime on 737 Max, coronavirus impacts, sources say

Boeing CEO Dave Calhoun told employees on Wednesday in a memo seen by Reuters that the company was taking steps to address the business pressures that result from “the pain our customers and suppliers are feeling.”Boeing took the extraordinary step of preserving production staffing levels when shutting down 737 Max production earlier this year in order to be ready to ramp back up when the 737 Max wins regulatory approvals to return to service.

But the depth of the coronavirus outbreaks and the demand by airlines to defer orders and delay predelivery payments has increased pressure on Boeing and forced it to consider tougher steps to reduce cash outflow, the people said. Boeing however will want to avoid as much as possible cutting into the resources needed for a smooth ramp up in production, the people said. Losing workers to other companies in a tight labour market or training new ones would complicate such efforts.Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience.

Source: News Formal (newsformal.com)

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