Boeing to Slash 17,000 Jobs Amid Prolonged Strike and Production Delays.

Published on 11 October 2024, by Marine Beaumont | Italy, Europe.

Boeing plans to reduce its workforce by 10%, leading to 17,000 job cuts, and will delay production as the company contends with various challenges.

In an email to employees, CEO Kelly Ortberg warned that job losses would affect all levels, including executives, managers, and staff.

The company has also flagged potential financial losses in its defense and military sectors, alongside postponing the delivery of its 777X aircraft. This news comes as Boeing deals with an ongoing strike by its workers and increasing concerns regarding the quality of its planes.

Ortberg mentioned that the headcount reduction will occur "in the coming months" and stated that further details will be shared with employees by leadership soon. He also confirmed that there would be no continuation of furloughs at this time.

"The current state of our business and the recovery we anticipate requires us to take difficult measures," Ortberg added.

In addition to the job cuts, production of the 777X has been pushed back, which the company attributes to "the developmental challenges, flight test delays, and the ongoing strike." Boeing has informed customers that the first delivery is now expected in 2026.

The strike, which has lasted for a month, involves around 33,000 workers seeking better pay conditions. Negotiations have stalled, with union leader John Holden stating, "We’re committed to this for the long term, and our members are aware of that."

Furthermore, the global credit agency S&P has placed Boeing on CreditWatch, indicating the possibility of a credit rating downgrade if the strike continues.

Boeing has also faced scrutiny from Congress following a January incident in which a defect caused a panel to blow out on a 737-MAX shortly after takeoff. Though no one was hurt, Boeing’s former CEO Dave Calhoun acknowledged the error.