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Boeing to save $1 billion with retirement contribution switch from cash to company stock

The change to Boeing 401(k) accounts, announced as the company also announced layoffs, will save $1 billion.

Less than a year ago the Boeing Company was soaring — 160,000 workers worldwide.

That number is now expected to shrink by 30,000 by the end of next year.

RELATED: Boeing makes deeper job cuts as pandemic throttles air travel

The pandemic is dragging the company back to Earth.

The announcement of the job cuts came the same day as Boeing reported a $449 million loss for the third quarter, a swing from the $1.17 billion it earned in the same period last year.

The company is also looking to save $1 billion by changing its contributions to employee retirement accounts to Boeing stock rather than cash to fund the company's contribution to 401(k) plans.

That move is expected to save the company $1 billion.

A letter to employees from the company states the stock decision will have "no impact on employees." 

"Cash from the Boeing Stock Fund will be transferred and invested into their chosen investment elections," the letter stated. "Employees are not required to do anything more than they currently do to manage their investment elections."