Boeing plans to cut 17,000 jobs, around 10% of its global workforce, due to ongoing financial challenges from a month-long strike involving 33,000 US workers, Reuters reports.
The strike, which began in mid-September, is costing Boeing $1 billion per month and has halted production of its 737 MAX, 767, and 777 jets. Boeing CEO Kelly Ortberg stated that the layoffs are necessary to align the workforce with the company’s “financial reality.” The layoffs are anticipated to pressure striking workers to negotiate, as many fear permanent unemployment. Boeing also filed a complaint with the National Labor Relations Board, accusing the machinists’ union of bad-faith bargaining.
Boeing expects to record $5 billion in losses in the third quarter and has delayed the first delivery of its 777X jet to 2026 due to development challenges, flight-test pauses, and the work stoppage. The company also plans to end its 767 freighter program in 2027 but will continue producing the KC-46A tanker. Boeing is exploring options to raise billions in capital, including selling stock and other securities, as it faces about $60 billion in debt and potential downgrades to its credit rating.
The company is also facing legal issues, including a fraud case settlement with the US Department of Justice, which includes a fine of up to $487.2 million, and ongoing issues with safety oversight of Boeing’s production processes from the Federal Aviation Administration (FAA).
