Boeing to axe a tenth of its workers as strike continues
Boeing is set to reduce its workforce by 10%, cutting 17,000 jobs, and delaying production as the company faces challenges across its operations.
In an email to staff, Chief Executive Kelly Ortberg stated that jobs at all levels, including executives, managers, and employees, are at risk.
The company also flagged potential losses in its weapons and military equipment division and postponed the delivery of its 777X aircraft.
This announcement comes amid employee strikes and growing concerns about the quality of Boeing’s planes. Ortberg added that the workforce reduction would take place “over the coming months.”
“Next week, your leadership team will provide more specific information on how this impacts your organization,” Ortberg said, noting that the company will not move forward with another round of furloughs.
“The state of our business and our future recovery require tough actions,” said Mr Ortberg.
As well as cutting jobs, the company also is delaying production of its 777X due to “the challenges we have faced in development, as well as from the flight test pause and ongoing work stoppage”, a possible reference to the ongoing strike that has been going on for several weeks.
“We have notified customers that we now expect first delivery in 2026,” he said.
A month-long union strike at Boeing has grown contentious, as approximately 33,000 workers sought a better pay package.
Talks appeared to fall apart this week, and the union’s lead negotiator, John Holden, told Reuters, “We’re in this for the long haul and our members understand that.”
The global credit ratings agency S&P has put Boeing on CreditWatch, a sign that they could downgrade the aeroplane manufacturer’s rating if the strike drags out.
The company was already under congressional scrutiny after a January incident, during which a defect caused a panel to blow out on a Boeing 737-MAX jet shortly after takeoff.
No-one was injured, and Boeing’s then-chief executive Dave Calhoun said the company was “acknowledging our mistake”.
