Boeing announced Wednesday that the company is cutting over 12,000 jobs—most of those in the Seattle area—as the beleaguered air manufacturer deals with the fallout of the coronavirus pandemic that’s at times seen air travel drop over 90% compared to 2019.
The company plans to lay off 6,770 U.S. workers this week, with another 5,520 workers being asked to take buyouts in coming weeks.
Boeing will temporarily halt production of its troubled 737 Max airliner in January, the manufacturer said.
Production of the jet had continued despite the model being grounded for nine months after two deadly crashes.
More than 300 people died when two 737 Max aircraft crashed in Indonesia and Ethiopia after reported problems with a new feature.
Boeing reported no new commercial aircraft orders in May. It was the second straight month that Boeing’s orders were at a standstill in the face of the 737 Max crisis.
The drop in orders isn’t only because of the grounding of the 737 Max. Boeing also has a massive backorder of about 5,000 planes. Many of its customers do not need to place orders for additional jets right now.
Next week is also the Paris Air Show, the key industry trade show for the year, at which Boeing and rival Airbus typically like to announce orders. So May is often a slower month for new orders.
A passenger jet flying at hypersonic speeds could revolutionize air travel by cutting down a transatlantic flight from New York to London from seven hours to two.
Er, theoretically, that is.
Boeing is still trying to figure out how any of this will all actually happen, but the aircraft manufacturing company does have its eye on a launch date. If the company has its way, it’ll get these hypersonic jets in the air in about 20 to 30 years from now — which, coincidentally, is about as long as every layover in Chicago O’Hare feels.