Boeing has announced plans to cut about 10% of its workforce, or around 17,000 jobs, due to ongoing financial losses and a strike by factory workers since mid-September.
Key details:
- Financial Impact: Boeing is projecting losses of $5 billion for Q3 and has reported $5 billion in pre-tax charges for its defense business and two commercial plane programs.
- Strike and Production Delays: A strike by 33,000 machinists has halted production of the 737 MAX, 767, and 777 jets.
- Job Cuts: The reductions will affect employees at all levels, including executives and managers, with Boeing CEO Kelly Ortberg citing the need to align workforce levels with the company’s financial reality.
- 777X Jet Delays: Delivery of the 777X jets has been delayed by a year, now set for 2026.
- Stock Market Reaction: Boeing’s stock dropped by 1.1% after the announcement.
- Future Plans: Boeing intends to provide more details on the impact of these cuts and has opted to delay the next cycle of furloughs.
These actions are part of Boeing’s broader strategy to reduce costs and address ongoing financial and operational challenges.
Sources:
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