Boeing has announced plans to cut 17,000 jobs, representing about 10% of its workforce, as the company faces significant challenges across its operations.
In an email to staff, CEO Kelly Ortberg indicated that employees at all levels, including executives and managers, are at risk of losing their jobs.
The decision comes as Boeing grapples with a month-long strike involving approximately 33,000 workers who are demanding better pay.
Negotiations have become contentious, with union negotiator John Holden stating, “We’re in this for the long haul, and our members understand that.”
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The ongoing strike has compounded existing issues within the company, including mounting concerns regarding the quality of its aircraft.
Boeing also announced delays in the production of its 777X plane, with first deliveries now expected in 2026.
Ortberg cited “the challenges we have faced in development, as well as from the flight test pause and ongoing work stoppage” as reasons for the delay.
The company is also facing potential losses in its weapons and military equipment sector.
Ortberg emphasized the need for tough decisions, stating that the “state of our business and our future recovery require tough actions.”
He assured employees that further details regarding the cuts would be communicated in the coming weeks.
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Adding to Boeing’s troubles, the global credit ratings agency S&P has placed the company on CreditWatch, indicating a possible downgrade if the strike continues for an extended period.
The company has been under congressional scrutiny following a January incident involving a defect in a Boeing 737-MAX jet that resulted in a panel blowing out shortly after takeoff, though no injuries occurred.
As Boeing navigates these challenges, the future of the company remains uncertain amid ongoing labor disputes and quality assurance concerns.