Boeing Will Cut 17,000 Jobs in Bid to Slash Costs

Boeing's new CEO, Kelly Ortberg, announced plans to cut approximately 17,000 jobs, representing a 10% reduction in the workforce, as part of a restructuring effort aimed at reducing costs and improving production quality. This decision comes amid ongoing financial struggles, with Boeing last reporting a profit in 2018 and facing significant challenges, including a costly strike initiated by the International Association of Machinists and Aerospace Workers. The strike, which has halted production of many commercial airplanes, is costing the company tens of millions of dollars daily. Ortberg indicated that the layoffs would affect various levels of employees, including executives and production workers, and would involve not filling positions as employees leave. Additionally, Boeing is expected to incur $5 billion in new costs related to its commercial and defense programs, including a $2 billion impact from delays in the 777X program and the decision to cease production of the 767 freighter. The company is also facing potential downgrades to its credit rating, which could further strain its financial situation. The ongoing labor dispute centers around workers' demands for a 40% wage increase and other benefits, reflecting broader frustrations with rising living costs and company policies.

- Boeing plans to cut 17,000 jobs, about 10% of its workforce.

- The company is facing significant financial challenges, including a costly strike.

- New CEO Kelly Ortberg emphasizes the need for restructuring to improve production.

- Boeing expects to incur $5 billion in new costs from various programs.

- Ongoing labor negotiations are contentious, with workers demanding higher wages and benefits.