Boeing Plans to Cut 10% of Workforce Amid Third-Quarter Loss
Boeing recently announced its intention to reduce its workforce by 10% as it anticipates a substantial third-quarter loss due to a machinist strike in the Seattle region. The company’s Chief Executive, Kelly Ortberg, stated that the cuts, affecting 17,000 positions globally, will include executives, managers, and employees.
The strike of 33,000 workers from the International Association of Machinists (IAM) has led to production delays and financial challenges for Boeing. The strike, which began on September 13, has resulted in pre-tax charges of $3 billion to Boeing’s commercial aviation results in the third quarter.
In response to the strike, Boeing will delay the delivery of the 777X to 2026 and cease production of the 767 Freighter in 2027. Ortberg emphasized the necessity of strategic decisions for the company’s future competitiveness and highlighted structural changes being implemented.
Criminal Settlement Questioned
Boeing’s leadership shakeup following safety incidents has led to increased scrutiny, with families of victims from previous crashes questioning a US Department of Justice settlement. Despite challenges, Boeing remains committed to restoring its operations and overcoming current obstacles.