Boeing (NYSE:BA) plans to cut 2,000 jobs this year, primarily in the Human Resources and Finance divisions, The Seattle Times reported. The report highlighted that Boeing is streamlining its corporate functions, which have grown large and inefficient. The company manufactures airplanes, rockets, rotorcraft, satellites, and missiles.
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The company announced that one-third of the 2K jobs will be outsourced to Tata Consultancy Services. The remaining positions will be eliminated.
Boeing had a total workforce of approximately 156,000 as of December 31, 2022. This implies that the company hired nearly 14,000 employees in 2022. Meanwhile, in 2023, the company plans to add about 10,000 jobs on the engineering front as demand remains strong.
Last month, Boeing reported strong revenues for Q4, reflecting solid deliveries and demand. It delivered 480 commercial airplanes in 2022. Moreover, it recorded 808 net orders. Also, it managed to narrow down losses and had a backlog of $404 billion, including over 4,500 commercial airplanes.
The recovery in the airline sector and the increase in the defense budget are driving revenues for Boeing.
Given the strength of its business, Boeing expects its operating cash flow to be in the range of $4.5-$6.5 billion. Furthermore, it expects to generate $3.0-$5.0 billion in free cash flows.
What is BA’s Stock Forecast for 12 Months?
Boeing stock has a Moderate Buy consensus rating on TipRanks based on 10 Buy and six Hold recommendations. Further, analysts have an average price target of $231 on BA stock, implying an upside potential of 11.7% over the next 12 months.
Meanwhile, hedge funds sold 1.2M shares of BA last quarter. Overall, BA stock has a Neutral Smart Score of seven.
