Boeing is freezing new hiring and preparing to draw down the full $13.8 billion loan it took out last month, according to newspaper reports.
Reuters has obtained an internal memo telling staff that the planemaker has paused recruitment and overtime, except in certain crucial areas.
Meanwhile, Bloomberg has also reported that Boeing is set to draw down the entire $13.8 billion loan it obtained just last month, as early as Friday.
The dual revelations, along with an escalation of the coronavirus crisis, sent shares plummeting
Chief executive Dave Calhoun told employees on Wednesday the company was taking steps to address the pressure from “the pain our customers and suppliers are feeling”.
“It’s critical for any company to preserve cash in challenging periods,” he said,
The news comes just weeks after World of Aviation reported how Boeing was hiring additional staff to ensure it could get its grounded 737 MAX back into service in a few months.
On 13 December 2019, the planemaker welcomed 115 new mechanics and assembly-line workers to its Pacific north-west manufacturing hub.
Another 122 new employees started on 10 January, and 143 the week after that, while only 31 machinists left the company that month.
All told, union figures showed Boeing hired 730 workers, a figure that is almost entirely net additions, according to IAM District 751, the company’s biggest labour union.
