Boeing looks to offload 30% of its real estate

Tough quarter brings downsizing in space, layoffs

National Weekend Edition /
Nov.November 01, 2020 12:00 PM
Boeing headquarters in Chicago with Boeing CFO Greg Smith (Photos via Wikipedia Commons and Boeing)

Boeing headquarters in Chicago with Boeing CFO Greg Smith (Photos via Wikipedia Commons and Boeing)

Boeing may reduce its real estate footprint by as much as 30 percent because of the pandemic.

The Chicago-based company announced on Wednesday it is exploring its options for selling some of the real estate it owns around the country, the Puget Sound Business Journal reported.

“We’re reviewing every piece of real estate,” CFO Greg Smith said. “Every building, every lease, every warehouse, every site to see how we can be more efficient.”

Smith said the review aims to take advantage of “new and flexible remote work possibilities” that arose from the coronavirus pandemic, according to the Business Journal.

Job cuts will also allow the company to reduce space. The company plans to cut 30,000 jobs by the end of the year and announced 7,000 layoffs on Wednesday.

Boeing Commercial Airplanes’ 855,000-square-foot headquarters in Renton, Washington is among the properties that could end up on the market. It’s estimated to be worth more than $92 million.

The company listed some Southern California properties earlier this year.

The company posted a $754 million loss excluding special items in the third quarter as revenue fell 29 percent, according to CNN.

“The global pandemic continued to add pressure to our business this quarter, and we’re aligning to this new reality,” CEO Dave Calhoun said on a thirdquarter earnings call. [Puget Sound Business Journal] — Dennis Lynch 


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