Boeing will cut 17,000 jobs—10% of its global workforce—and delay the first deliveries of its 777X jet by a year, citing financial strain from a month-long strike by 33,000 U.S. West Coast workers. The strike halted production of Boeing’s 737 MAX, 767, and 777 jets. CEO Kelly Ortberg said the downsizing is necessary to “align with our financial reality,” with reductions affecting employees at all levels.
The company expects third-quarter revenue of $17.8 billion and a $5 billion loss, with a per-share loss of $9.97. Analysts suggest the layoffs could pressure workers to end the strike, which is reportedly costing Boeing $1 billion per month.
Boeing also faces legal challenges, including a fraud case settlement with the U.S. Department of Justice. The company is exploring options to raise $10 billion to $15 billion to maintain its credit rating. Despite these setbacks, Ortberg remains committed to addressing long-term strategic goals while navigating near-term challenges.
Related Readings:
