Boeing announces nearly 17,000 job cuts
In the midst of a financial crisis, a crisis of reliability and prestige, and in the midst of a strike, Boeing announced this Friday that it would reduce its workforce by 10%, which amounts to about 17,000 workers, while losses grow and workers protests that Aircraft production plants have been paralyzed, this is the fifth week.
The cuts will occur in the coming months, said company CEO Kelly Ortberg. The decision will impact Boeing and hundreds of suppliers that have struggled to hire staff since the pandemic when demand plummeted. The aviation giant won’t deliver its uncertified 777X wide-body jet until 2026, marking a six-year delay to its planned program. The company had already stopped flight testing of these devices in August last year when it discovered structural damage to one of them. It will also cease production of the 767 commercial freighter in 2027 after completing remaining orders, Ortberg said in a report sent to his team.
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“Our business is in a difficult situation and the challenges we face are very serious,” he said. “In addition to managing the current situation, rebuilding our business requires strong decision-making and we will have to make structural changes to ensure we can be competitive and supply our customers in the long term,” Ortberg emphasized. Boeing reported a loss of $9.97 per share in the third quarter. The company explained this this Friday in a surprise statement. He has held positions in both the commercial aviation and defense businesses.
The job and cost cuts are the most drastic measures to date taken by Ortberg, who took the reins just two months ago.
S&P Global Ratings said this week that Boeing is losing $1 billion a month since the strike began on Sept. 13.