(59 days ago)
Airbus Group SE’s struggles with its A380 superjumbo are deepening as the planemaker delays deliveries of a dozen aircraft over the next two years to Emirates, the double-decker’s biggest buyer, potentially pushing the program into the red.
Airbus scaled back its annual production schedule for the A380 in July after failing to secure new orders this year
The program broke even in 2015 at 27 deliveries.
(45 days ago)
Boeing: Three More Waves of Layoffs in 2017, as Orders Collapse to 7-Year Low. Shares Near All-Time High
This is not the way to start your workday… to find this email from your boss in your inbox:
“As we enter 2017, our plan calls for us to reduce our Engineering staff. I realize some of this news is unpleasant. But I wanted to respect your right to know what is occurring this year.”
But that’s what happened on Tuesday at Boeing.
Hammered by slowing aircraft sales and a declining order book, Boeing warned on Tuesday in an internal memo that it would conduct involuntary and voluntary layoffs of engineers in Washington state, southern California, and South Carolina, according to The Seattle Times. The memo did not mention the size of the staff cuts.
The memo by John Hamilton, VP of engineering at Boeing Commercial Airplanes, summed the situation up this way:
“We continue to operate in an environment characterized by fewer sales opportunities and tough competition.”
These staff cuts come on top of the cuts in 2016, when Boeing slashed its workforce in Washington state down by 9.3%. That’s 7,357 jobs.
Business has been tough. In 2016, deliveries fell by 14 jets from a year ago, to 748. Net orders dropped 13% from an already rotten level in 2015, to just 668, down 53% from 2014. And the lowest level since 2010!
Of these orders, 550 were for the 737 model. But Boeing only sold 58 Dreamliners, and analysts are speculating that it will need to cut production. And it only sold 17 of its twin-aisle long-range 777, its most profitable plane. In December, Boeing said it would slash production of the 777 by 40%.
Order cancellations in 2016 jumped by 67% to 180 airplanes, another sign that airlines are getting increasingly cautious – and nervous.
In short, orders have plunged 53% in two years, order cancellations have soared, deliveries have dropped, production is getting cut, as wave after wave of layoffs sweep out engineers and productions worker – but no problem. In this wondrous era of ours, stocks can only go up no matter what. Boeing closed up on Tuesday, at $159.07 a share, just a buck shy of its all-time high in December: