Boeing posts $641B loss, says it will cut 10% of workforce

April 29 (UPI) -- U.S. aviation giant Boeing said in an earnings report Wednesday it lost $641 billion over the first three months of this year and will lay off 10 percent of its workforce.

The company reported first-quarter revenues of about $17 billion, a 26 percent decline over Q1 2019 -- and a per-share loss of $1.11, compared to a $3.75 increase a year ago.

The losses were generally in line with investor expectations.

Boeing also said it spent more than $4 billion between January and April amid a global health emergency, order cancellations and a lack of new business.

President and CEO David Calhoun said travel disruptions caused by the coronavirus crisis weighed heavily on the company's finances, as did the continual grounding of its best-selling 737 Max, which has now been barred from flight for more than a year.

"The COVID-19 pandemic is affecting every aspect of our business, including airline customer demand, production continuity and supply chain stability," Calhoun said. "Our primary focus is the health and safety of our people and communities while we take tough but necessary action to navigate this unprecedented health crisis and adapt for a changed marketplace."

The Boeing chief also announced "leadership and organizational" restructuring and plans to reduce staffing levels with a voluntary layoff program. He said additional "workforce actions" will follow, as necessary.

A 10 percent cut to Boeing's global force represents about 16,000 workers.

Calhoun said earlier this week he expects the "frozen" air travel industry won't return to normal levels for two or three years.