Boeing to cut 20% of workforce by end of 2021 amid pandemic aftermath

Boeing plans to cut another 7,000 jobs after sinking to a $3.5bn (£2.7bn) as a result of the pandemic and decline in sales.

The company said on Wednesday that it expects to cut its workforce to about 130,000 employees by the end of next year, down 30,000 from the start of this year.

The firm posted a loss of $466m (£354m) for the three months to 30 September, its fourth straight quarterly decline.

Boeing has been pressured by a drop in revenue after its 737 Max was grounded in March 2019 following two deadly crashes.The company recently lowered its forecast of demand for new planes over the next decade by 11% because of the coronavirus pandemic.

Boeing president and chief executive Dave Calhoun said the pandemic had "continued to add pressure" to the business .

He added: "Our diverse portfolio, including our government services, defence and space programmes, continues to provide some stability for us as we adapt and rebuild for the other side of the pandemic."

Boeing, which along with Europe’s Airbus dominates the aircraft-building industry, has seen orders and deliveries of new planes drastically fall this year in the face of the pandemic and the grounding of the Max.

The company failed to record a single order for a new jetliner in September. In the first nine months of the year, Boeing has delivered only 98 airline planes, compared with 301 during the same stretch of 2019.

The Chicago company, which has aeroplane assembly plants near Seattle and in South Carolina saw it's shares rise about 1% in trading before the opening bell on Wednesday. They have dropped 52% since the start of the year, compared with an increase of nearly 5% in the Standard & Poor’s 500 index.