Yahoo Finance Live looks at Boeing’s plans to cut finance jobs amid as the manufacturer considers relocating its headquarters and deals with China.
RACHELLE AKUFFO: My pick is planemaker Boeing. The company announcing plans to lay off nearly 150 finance and IT jobs to simplify its corporate structure and focus on manufacturing and product development. The stock was in positive territory, but after that Fed announcement, also down there about 1 and 1/2%. Now the company also grew its workforce, though, this year by about 10,000 employees and hired in its engineering and manufacturing departments to really keep up with demand.
But it has been a busy week for Boeing, as China’s aviation regulator confirmed that it did hold a meeting with Boeing about bringing the 737 Max back to China. Now the meeting was to review improved aircraft training plans for the jet after those two fatal crashes that led to the grounding of the 737 Max in China in 2019.
Now, interestingly, Boeing is also announcing today that it’s teaming up with augmented reality developer Red 6 for advanced fighter pilot training. This is part of Boeing’s broader strategy for modernizing pilot training, as well as its next generation of aircraft, Seana. Stock under pressure, though, and year to date, down about almost 30% there.
SEANA SMITH: Yes, stock under pressure here, along with the broader markets. It’s interesting here just because we know China could be critical here for Boeing just regaining its footing here. Certainly would be a huge step forward as it does try to improve its balance sheet since it had been hit so hard by the grounding of the 737. Also the fact of COVID and how big of a hit that had on Boeing here over the last two years.
In terms of the job cuts, Boeing did quickly point out that it was not related to the announcement earlier this year that it was moving its headquarters. So 150 job cuts are obviously something significant, but when you take a look at the size of Boeing, they still have a very, very large workforce.