Boeing announced Friday that it will cut 10% of its workforce, or about 17,000 jobs, amid an extended machinists’ strike.
Boeing CEO Kelly Ortberg said the company plans to cut its workforce by 10% as the company grapples with financial and operational challenges. According to Go to ABC News. The decision is aimed at avoiding another furlough cycle of employees as the company looks to streamline operations amid continued financial pressure.
Ortberg also announced delays for several major programs, including the postponed launch of the 777X jet to 2026, while the 767 freighter program is scheduled to end in 2027, ABC News reported. In addition, significant new losses are expected in Boeing’s defense, space and security segment this quarter.
BREAKING NEWS: Boeing plans to lay off 10% of its workforce and halt commercial production of its 767 aircraft as the strike drags on. Here’s what we know: https://t.co/xPV6ydXQ1v
— Seattle Times (@seattletimes) October 11, 2024
“Our business is in a difficult situation and it is difficult to overstate the challenges we face together,” Ortberg said, the newspaper reported. “Beyond navigating the current environment, rebuilding the company will require difficult decisions and structural changes that will enable us to remain competitive and serve our customers over the long term.”
In these announcements, Boeing projected The company reported third-quarter revenue of $17.8 billion, a GAAP loss per share of $9.97, and operating cash flow of $1.3 billion. The layoffs follow a permanent strike by the International Association of Machinists, which is expected to cost Boeing and its shareholders $1.05 billion and an additional $351 million in losses to workers and suppliers. are. (Related: Boeing’s ‘unparalleled’ new airliner grounded due to new structural flaw)
The company has also come under intense scrutiny due to several high-profile incidents, including a door plug ripped off a 737 Max 9 aircraft during an Alaska Airlines flight, leading to a federal investigation. A Senate report released in September found that Boeing sacrificed quality for production speed and did not provide adequate training, based on a 2024 FAA special audit and U.S. Senate subcommittee findings. he accused.
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