Boeing Share Price Makes Rapid, Uncontrolled Descent
Wochit
2020-06-11
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Markets Insider reports aircraft manufacturer Boeing plummeted 12% on Thursday.
Its share price descended after Spirit Aerosystems said it was directed by Boeing to pause the production of parts used in the troubled 737 MAX plane.
Spirit's announcement put the brakes on investor enthusiasm for the return of the 737 MAX plane, which is on track for key test flights later this month.
Spirit says it plans to cut production of shipsets for the 737 MAX by at least 16%, and that more layoffs are expected.
The company intends to reduce its hourly workforce at its site in Wichita, Kansas, due to the drop in production.
Its share price descended after Spirit Aerosystems said it was directed by Boeing to pause the production of parts used in the troubled 737 MAX plane.
Spirit's announcement put the brakes on investor enthusiasm for the return of the 737 MAX plane, which is on track for key test flights later this month.
Spirit says it plans to cut production of shipsets for the 737 MAX by at least 16%, and that more layoffs are expected.
The company intends to reduce its hourly workforce at its site in Wichita, Kansas, due to the drop in production.
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