We all knew that aerospace company Boeing (BA) was planning layoffs. But new reports show that these layoffs are going farther than some expected. Even those involved in the union are apparently not immune, and the numbers are starting to climb.
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So far, Boeing has laid off 2,199 workers in Washington state alone, and those numbers will only rise going forward. We knew, based on reports from October, that Boeing meant to lose about 10% of its total workforce, hitting a grand total of somewhere around 17,000 workers in total.
While the strike put a significant strain on Boeing’s bottom line, it was not the cause of layoffs, noted CEO Kelly Ortberg. It also had little to do with the issues that Boeing had seen before the strike even hit, like the door plug debacle, various mechanical failures, a production cap from the Federal Aviation Administration (FAA), and the calamity that was Starliner.
Not Just Washington
Media reports reveal that more than 400 engineers with the Society of Professional Engineering Employees in Aerospace, an engineer’s union, found themselves unemployed from Boeing. Further, Boeing also reportedly let go of around 200 employees in Charleston, South Carolina, the location that was not even part of the recent strikes.
Reports noted that Boeing is trying to save on cash as it works to develop a whole new aircraft, possibly to be called the 797. The 797 is a midsize aircraft intended to take over for the aging 767 lineup. Size-wise, it will be roughly between the 737 and the widebody 787.
Is Boeing a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 15 Buys, six Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 33.4% loss in its share price over the past year, the average BA price target of $193.62 per share implies 33.77% upside potential.
