Boeing to cut staff, boost liquidity with recovery not coming anytime soon

Boeing Co said on Wednesday it would cut its workforce by about 10 per cent, further reduce 787 Dreamliner production and try to boost liquidity as it prepares for a years-long industry recovery from the coronavirus pandemic that drove the planemaker to a net loss for the second straight quarter.

Chicago-based Boeing burned through $4.7 billion in cash in the first quarter but said it was confident of getting sufficient liquidity to fund its operations, sending its shares up 5 per cent to $137.57.

Reuters reported on Tuesday that Boeing is working with investment banks on a potential bond deal worth at least $10 billion. Last month it drew down its entire $13.8 billion credit line and is also weighing seeking government aid.