Resumption of 737 MAX Production
Boeing said the resumption of their troubled 737 MAX plane will be at a low rate. as the company “implements more than a dozen initiatives focused on enhancing workplace safety and product quality”. Boeing did not specify how many planes would be built per month, but they did say they would “ramp up production this year”.
“We’ve been on a continuous journey to evolve our production system and make it even stronger. These initiatives are the next step in creating the optimal build environment for the 737 MAX.”Walt Odisho, Vice President and General Manager of the 737 program
Boeing hopes to be awarded FAA clearance for the MAX in late summer or early autumn 2020. The 737, in its various models, has in the past provided about half the revenue of Boeing’s Commercial Airplanes division.
Boeing Layoffs Plans
Boeing announced that they will be cutting more than 13,000 employees, as the company continues to try to battle the crisis caused by COVID-19 pandemic.
Boeing announced roughly 6,770 involuntary layoffs among US employees and a further 5,520 who will take “voluntary severance packages”. The initial cuts were larger than expected, union officials said in media reports. Boeing said the layoff notices delivered this week will be the largest part of their plans, announced last month, to shed about 10 percent of their 160,000-strong global workforce this year; as they reduce commercial plane production as airlines remain grounded around the world and have deferred or outright cancelled orders.
Boeing has about 18,000 international employees. The company said that they are still working on overseas layoff plans. Boeing said the latest cuts are focused on their commercial jetliner business, but did not provide details on the units or locations affected. Boeing is also expected to cut jobs at their rapidly growing services arm, as well as at their central corporate offices; as airlines are reducing spending on aircraft parts, executives said last month.