Posting a first quarter loss of $641 million, plane maker Boeing is slashing up to 16,000 jobs.
Already facing unprecedented challenges due to the year-long grounding of the Boeing 737 Max, the company is cutting commercial jet production.
New orders are no longer a priority for most airlines around the world with about two-thirds of all planes currently grounded due to the Covid-19 pandemic.
Current flight schedules are only about 5% of normal levels for many carriers.
Boeing says it will be a long haul to get back to pre-pandemic levels.
"The aviation industry will take years to return to the levels of traffic we saw just a few months ago. It is difficult to estimate when the situation will stabilize, but when it does, the commercial market will be smaller and our customers’ needs will be different," said Boeing CEO David Calhoun.
The workforce in its commercial jet production business will shrink by about 15%.
Buyouts have been offered but the company admits compulsory layoffs are possible.
"I know this news is a blow during an already challenging time. I regret the impact this will have on many of you. I sincerely wish there were some other way," Calhoun said in a message to employees.
In a bid to shore up its balance sheet, Boeing is in talks with banks about a multi-billion dollar bond issue.
