Boeing Plans 30,000 Reduction In Workers: Pandemic, Fatal Plane Crashes, Executive Compensation And Stock Buybacks To Blame

 One of the most affected industries affected by Covid-19 is airlines. At the beginning of the virus outbreak, governments warned potential passengers about the health risks associated with air travel, and then ordered them to stop all unnecessary flights. When people realized the terrible consequences associated with the disease, they decided to avoid traveling.

Boeing, the legendary major American aircraft manufacturer, took the brunt of grounding the planes. Airliners didn't have to buy new planes because of the almost nonexistent demand. The abandonment of its previous best-selling 737 Max jet in March 2019, after two fatal crashes that killed 346 people, hurt sales.

The current and immediate climate is not conducive to air travel. Europe and other regions are experiencing a second wave of the coronavirus outbreak, and it looks like the United States will too. Boeing expects travel to die out over the next few years due to the pandemic. As the planmaker loses cash—Boeing reported a loss of $449 million for the third quarter, compared with the $1.2 billion it earned in the same period last year—it is in cost-cutting mode and has announced plans to lay off another 7,000 workers.

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Boeing CEO Dave Calhoun said, " The global pandemic continued to put pressure on our business this quarter, and we are adjusting to this new reality." Calhoun told workers that the company intends to reduce its headcount by approximately 30,000 by the end of 2021. Care will include attrition, retirement, and redemption. Approximately 19,000 employees are expected to leave Boeing this year.

Not everything can be blamed on the virus. Covid-19 may have been the last straw, but Boeing has made several bad decisions, including changing its CEO, accusations of mis-selling its 737 Max jets, faulty software, and spending more than $ 11 billion on stock buybacks. After two plane crashes that killed more than 300 passengers, an aborted mission to the International Space Station, and an unruly attitude, then-Boeing CEO Dennis Muilenburg was fired. It was reported that the former chief executive would still leave with $ 62.2 million. Calhoun succeeded Muhlenburg, who resigned at the end of December. According to regulatory filings, Calhoun receives a total annual compensation of about $ 11 million a year.

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Boeing initially boasted that its 737 MAX jet was the fastest-selling aircraft in its history-with about 5,000 orders from more than 100 customers worldwide. The hype did not live up to expectations, and human casualties became a reality.

The first accident occurred in 2018. Data collected from the plane's black box showed that the pilots struggled to wrest control from the plane's automatic security system. Reports of the first crash surfaced, raising questions about the plane's new and confusing software and lack of proper pilot training. The company's rush to bring the plane to market and the regulatory agency that allowed Boeing too much leeway have been called into question. Fears were put aside, and a second accident occurred, in which hundreds of passengers were killed. Only after that, the company decided to land the planes.

Muilenburg appeared before Congress as part of an investigation into the crash. Senator Richard Blumenthal accused Boeing and Muilenburg of putting passengers in " flying coffins as a result of Boeing's decision to hide MCAS [Maneuverability Enhancement Systems] from pilots."Senator Ted Cruz said “' Why didn't your team come to you with their hair on fire and say, 'We have a real problem here'? What can you say about Boeing? Why didn't you act before 346 people died?”

In response to their concerns, Muilenburg said “ "We don't 'sell' security; it's not our business model.” After a congressional hearing, he was stripped of his presidential title, but allowed to remain CEO of Boeing.

To compound Boeing's problems, emails from the company were released that show employees made some incendiary comments about the company, its management, the planes and their lack of safety. They brazenly boasted about flaunting FAA regulators and mocked the safety of aircraft.

- This plane is designed by clowns, who, in turn, are controlled by monkeys.”

God still haven't forgiven me for what I have in the past year hiding his guilt.”

“Would you put your family on a Mac training plane? I wouldn't," one employee wrote to a colleague in an email. "No," the colleague replied.

Complaining about safety deficiencies, the employee said that Boeing " has created a culture 'good enough' and that's an incredibly low bar.”

"This is a joke," one employee wrote in September 2016, referring to the MAX.

"This plane is ridiculous."

"Pee is a bad design," said another, in April 2017.

"All the messages are about meeting schedules, not the quality of delivery," one employee said.

A colleague replied: "We put ourselves in this position by choosing the cheapest supplier and subscribing to impossible schedules.”

- Why the contract was awarded to low-ranking and most unproven supplier? Exclusively because of the lower dollar."

"There is no certainty that the FAA understands what they are taking," one employee wrote in February 2016.

"Our arrogance is (our) pure undoing."

To be honest, engaging in trash talk and complaining about your boss and the incompetence of senior management is commonplace in everyday corporate life, as a way to vent frustration. In this case, the emails are harrowing.

Boeing officials say the language and sentiments expressed by employees "are inconsistent with Boeing's values, and the company is taking appropriate action in response."