Boeing to cut 17,000 jobs, or 10% of its global workforce
Boeing plans to cut 17,000 jobs and delay the 777X delivery by a year due to financial struggles, reporting a $5 billion loss and exploring $10 billion to maintain its credit rating.
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Boeing has announced plans to cut 17,000 jobs, representing 10% of its global workforce, and delay the first delivery of its 777X jet by a year due to ongoing financial struggles exacerbated by a month-long strike involving 33,000 workers. The company reported a loss of $5 billion in the third quarter and indicated that the layoffs are necessary to align with its financial reality. CEO Kelly Ortberg emphasized the need to reset workforce levels and priorities. The strike has halted production of key aircraft models, and analysts suggest it could pressure workers to end the strike to avoid permanent unemployment. Boeing's financial outlook has worsened, with expectations of $17.8 billion in revenue and a loss per share of $9.97. The company is also facing challenges related to its defense business and has been under scrutiny for safety issues. Additionally, Boeing is exploring options to raise up to $10 billion to maintain its credit rating, which is currently at risk. The company plans to end its 767 freighter program by 2027 while continuing production of the KC-46A Tanker. The situation reflects ongoing difficulties for Boeing, which has struggled with cash flow and production issues for several years.
- Boeing will cut 17,000 jobs, about 10% of its workforce.
- The first delivery of the 777X jet has been delayed by a year.
- The company reported a $5 billion loss in the third quarter.
- Ongoing strikes are impacting production and financial stability.
- Boeing is exploring options to raise up to $10 billion to maintain its credit rating.
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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.
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