Boeing’s new CEO Kelly Ortberg made a shocking announcement on October 11 with plans to cut 17,000 jobs, delay 777X deliveries to early 2026, and reported over $6 billion in third-quarter losses. The company is facing immense challenges, including an ongoing strike and potential credit rating downgrades.
Ortberg emphasized the need for tough decisions and structural changes to align the workforce with financial realities. A $5 billion provision was announced for civil aviation and defense, with a net loss of $9.97 per share in the third quarter.
Additionally, Ortberg warned of further delays in the 777X program and the discontinuation of the 767 freighter production in 2027, amidst a workers’ strike in Seattle and struggles with production line disruptions.
Order collapse
The strike, started on September 13, has halted production of key aircraft models, leading to employee furloughs and challenges for suppliers. Boeing’s firm stance in negotiations and legal actions against the union reflect the complexity of the situation.