Boeing has said that it would cut its B777 production to five a month in August 2017 – a 40 per cent reduction from the current rate of 8.3 a month citing slow sales, according to a Reuters report.
To date, Boeing has booked just 468 orders this year, down from 768 last year and 1,432 in 2014. The figure is also well below Boeing’s target of having sales roughly match the 745 to 750 aircraft Boeing expects to deliver to customers this year.
The decision follows the announcement to slash its worldwide workforce by an as-yet-to be determined number. This trend follows the eight per cent number of jobs cut in 2016 by the aircraft maker.
“To successfully compete and win new orders that will fund future product development and growth requires us to achieve much better performance,” Ray Conner, vice chairman of Boeing and Boeing Commercial Aircraft CEO Kevin McAllister said in a memo to Boeing Commercial Airplanes employees on Monday, which was made public.
Boeing is contending with a strong dollar that makes its products more expensive overseas, a non-functioning U.S. Export-Import Bank that hampers aircraft financing, and President-elect Donald Trump’s provocation of China, one of Boeing’s biggest markets.
Trump has also targeted Boeing for criticism, saying the United States should cancel a pending order to buy modified Boeing 747s as new presidential aircraft, Air Force One, because the cost was too high.