Boeing (NYSE:BA) said it will cut 2,000 “white-collar” jobs in its finance and human resources departments . BA stock responded by rising $1 per share overnight.
Boeing opened Feb. 7 at about $208 per share with a market capitalization of about $124 billion on $66.6 billion in revenue. The company was last profitable in 2018. Boeing , or $8.30 per share, in 2022.
The fourth-quarter loss, , was blamed on shortages of labor and supplies.
Flying Low
The layoffs are part of an ongoing trend of releasing office workers and technical staff as businesses anticipates a recession.
Bank of America says companies are now in “.” Employers announced more than 100,000 job cuts in January, according to Challenger, Gray & Christmas, which tracks employment, four times more than a year ago. Almost half the cuts were in technology. In Boeing’s case, about one-third of the work is to Tata Consulting in India.
Boeing announced plans to move its headquarters from Chicago to Arlington, Virginia after leaving Seattle in 2001. While known as America’s largest maker of civilian airliners, it is now the
in the U.S.
Boeing is now worth half what it was at its peak in early 2019 just before it grounded its entire fleet of the 737-MAX. Production of the MAX , but 737-MAX flights only picked up again in China, once Boeing’s most important market, .
Boeing has , according to Tipranks, with 10 recommending investors buy the stock and five in the “hold” camp. None are presently advising a sell. The stock traded for as little as $121 last September but has been recovering since.
What Happens After Boeing Layoffs?
Most large military contractors are wildly profitable. Boeing should be in 2023. Boeing has also trailed rival Airbus S.E. (OTCMKTS:EADSY) in civilian deliveries for .
Odds are the trends reverse this year. If they don’t, expect management to be shown the door.
On the date of publication, Dana Blankenhorn held no positions in any companies mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
