U.S. Boeing to reduce workforce and reduce production Impact on Japanese economy New Corona April 30 13:23
US aircraft giant Boeing, whose business is deteriorating due to the spread of the new coronavirus, has decided to reduce the production of passenger aircraft such as the 787 and 777 in addition to the large-scale personnel reduction. Many Japanese manufacturers are involved in the production of such passenger aircraft, and the stagnation of the broad-based aircraft industry is likely to affect the Japanese economy.
Boeing announced on the 29th that its business performance for the last three months has reached its final deficit for the second consecutive term.
This is due to the impact of the spread of the new coronavirus, which drastically reduced aviation demand while the business performance deteriorated due to the two crashes.
At a conference call, CEO Calhoun, a top executive, said, "It takes a couple of years for the aviation industry to return to what it was last year. It will take a few more years to grow again."
On top of that, we announced a policy of reducing the number of employees by 160% from the 160,000 employees and reducing the production of commercial aircraft such as the 777 and the 787, which are called "Triple Seven." 35% of the 787s are Japanese companies.
Japan's Kawasaki Heavy Industries, which handles the fuselage part, and SUBARU, which supplies parts for Boeing, have also decided to suspend operations at their main factories until the beginning of next month, and it is expected that the impact will be prolonged.
Europe's Airbus, which divides its market share from Boeing, is also suffering from poor management, and the stagnation of the aircraft industry, which has a wide base, is likely to affect the Japanese economy, including SMEs.