Boeing strike: 17,000 layoffs

The fallout from the strike at Boeing’s commercial aircraft division is already underway: 17,000 layoffs, a farewell to the B-767 and another year of delays to the B-777X.

“Our company is in a difficult situation and it is difficult to overestimate the challenges we face together. In addition to navigating our current environment, Rebuilding our business requires difficult decisions. And we will have to make structural changes to ensure we can remain competitive and deliver results for our clients in the long term“

This is how it starts That letter that Kelly Ortberg, president and CEO of Boeing, sent to his employees.

Those”difficult decisions“they startalthough in his letter it is named last, due to layoffs of about 17,000 workers: “Also we must restructure our workforce to adapt it to our financial reality and a more precise set of priorities. We plan to reduce our workforce by approximately 10 percent in the coming months. These cuts will affect executives, directors and employees.”

“goodThe news is that the next planned round of layoffs that was previously announced will not happen.

other solutionsin the order Ortberg quotes them:

Delay the first deliveries of the B-777-9 by one year, until 2026. And by 2028 B-77-8F. “rWe encountered these problems during development, as well as a pause in flight testing and a stop in work. in progress, they will delay the calendar our program. We have notified customers that we now expect first delivery in 2026.“

End of Boeing 767 production except for the KS-46 version. “TWe plan to build and deliver the remaining 767 cargo ships to order from our customers. etc.stop production commercial program in 2027. Production of the KS-46A tanker will continue“

The cargo version is the only one of this model that is still in production.But it had to end as a consequence ICAO regulations, approved in 2017 and coming into force in 2022, address noise and emissions.. Boeing received a five-year exemption from the US government to continue production of the B-767F.

AND, report of significant losses in the Space, Defense and Security division. “NOur performance on fixed-price development programs is simply not up to par.. We expect further significant losses in the quarter driven by the halt in commercial derivatives activities, ongoing program issues and our decision to end production of the B-767 freighter.“

Ortberg ends his letter noting that: “We know these decisions will create difficulties for you, your families and our team, and it is my sincere wish that we could avoid making them.. However, the state of our business and our future recovery require difficult measures.

We will be honest with you regarding the timing and impact of these measures, and we will be professional and support everyone along the way.”.

In this announcement of preliminary economic results for the third quarterfrom Boeing stated the impact on “financial results related to spending on certain programs in the commercial aviation and defense, space and security segments, as well as operational shutdowns when the company reports third-quarter results on Oct. 23. The company expects third-quarter revenue to be $17.8 billion.A GAAP loss per share was $9.97. and operating cash flow -$1.3 billion.“.

The commercial aircraft division will receive $3 billion in emergency spending. in the B-777X (2.6 billion) and B-767 (400 million) programs.

Defense, space and security will also have an exceptional position, this time at $2 billion. for the T-7A (900 million), KS-46 (700 million), Starliner and MQ-25 capsule programs.