Boeing to cut 17,000 jobs as losses deepen during factory strike
Boeing plans to cut 17,000 jobs, about 10% of its workforce, amid financial losses from a machinist strike. The 777X aircraft launch is delayed until 2026, with significant expected losses.
Read original article
Boeing has announced plans to cut approximately 17,000 jobs, representing about 10% of its workforce, as the company faces significant financial losses exacerbated by an ongoing factory strike. The strike, which has lasted nearly a month, involves over 30,000 machinists and has led to a cash outflow of $1.3 billion for the third quarter. Boeing's CEO, Kelly Ortberg, indicated that the company is in a challenging position and will need to make tough decisions to restore stability. Additionally, the launch of the new 777X wide-body aircraft has been delayed until 2026 due to development issues, marking a six-year setback. Boeing is also expected to report a loss of $9.97 per share for the third quarter, alongside a pretax charge of $3 billion in its commercial airplane unit and $2 billion in its defense sector. The company has faced criticism from credit rating agencies regarding its financial health and risk of losing its investment-grade rating. Tensions between Boeing and the machinists' union have escalated, with Boeing filing an unfair labor practice charge against the union for alleged bad faith negotiations.
- Boeing plans to cut 17,000 jobs, about 10% of its workforce.
- The launch of the 777X wide-body plane is delayed until 2026.
- The ongoing machinist strike has resulted in significant financial losses for Boeing.
- The company expects a loss of $9.97 per share in the third quarter.
- Tensions between Boeing and the machinists' union are escalating.
Related
The Decay of Boeing
Boeing faces operational challenges, lagging behind Airbus in deliveries and backlog. Recent safety incidents have raised public concerns, compounding reputational damage from past crashes, impacting its commercial aircraft revenue.
Striking Is in the Air at Boeing
Boeing workers are preparing for a potential strike as contract expiration nears, citing low wages, mandatory overtime, and pension loss. The union demands a 40% wage increase and pension reinstatement.
To avoid strike, Boeing promises 25% pay hike–and to build next jet in Seattle
Boeing and the Machinists union reached a tentative agreement to avoid a strike, featuring a 25% pay increase, improved benefits, and commitments to local production and worker safety discussions.
Boeing crafts plan to furlough 'many' employees as workers strike for higher pay
Boeing faces challenges as 33,000 workers strike for higher wages, halting 737 Max production. The company considers furloughs and plans to resume negotiations amid financial recovery concerns.
Boeing Will Cut 17,000 Jobs in Bid to Slash Costs
Boeing's CEO Kelly Ortberg announced plans to cut 17,000 jobs, facing financial struggles and a costly strike, while expecting $5 billion in new costs and contentious labor negotiations over wages.
1 commentsRelated
The Decay of Boeing
Boeing faces operational challenges, lagging behind Airbus in deliveries and backlog. Recent safety incidents have raised public concerns, compounding reputational damage from past crashes, impacting its commercial aircraft revenue.
Striking Is in the Air at Boeing
Boeing workers are preparing for a potential strike as contract expiration nears, citing low wages, mandatory overtime, and pension loss. The union demands a 40% wage increase and pension reinstatement.
To avoid strike, Boeing promises 25% pay hike–and to build next jet in Seattle
Boeing and the Machinists union reached a tentative agreement to avoid a strike, featuring a 25% pay increase, improved benefits, and commitments to local production and worker safety discussions.
Boeing crafts plan to furlough 'many' employees as workers strike for higher pay
Boeing faces challenges as 33,000 workers strike for higher wages, halting 737 Max production. The company considers furloughs and plans to resume negotiations amid financial recovery concerns.
Boeing Will Cut 17,000 Jobs in Bid to Slash Costs
Boeing's CEO Kelly Ortberg announced plans to cut 17,000 jobs, facing financial struggles and a costly strike, while expecting $5 billion in new costs and contentious labor negotiations over wages.