Boeing Resumes 737 MAX Production, Announces More Job Cuts

Boeing announced Wednesday it would be forced to cut more than 12,000 jobs in the United States due to the continued impact of the coronavirus outbreak.

According to The Associated Press, Boeing officials revealed it would lay off 6,770 U.S. employees this week and hammer out an agreement with another 5,520 workers on voluntary buyouts.

In the comping months, the airplane manufacturer said it would cut 10 percent of its total workforce of around 160,000 employees. About 10,000 of the layoffs and buyouts would be focused in the Seattle area.

“The COVID-19 pandemic’s devastating impact on the airline industry means a deep cut in the number of commercial jets and services our customers will need over the next few years, which in turn means fewer jobs on our lines and in our offices,” Boeing CEO David Calhoun announced to employees on Wednesday.

In addition to the job cuts, the company revealed production of grounded 737 MAX planes has once again resumed. The fleet of existing MAX aircraft remains grounded since 2019 after two deadly crashes.

Boeing executives expect to resume deliveries of the 737 planes before October.

Air travel in the U.S. fell by 96 percent through mid-April to fewer than 100,000 people at times, but the numbers are climbing. Transportation Security Administration (TSA) officials said they screened 264,843 people at airports on Tuesday.