Layoffs: Boeing To Cut 10 Per Cent Of Global Workforce As Strikes Continue To Impact Production
The plane manufacturer informed that it is cutting about 10 per cent of its worldwide workforce, which comes to roughly 17,000 jobs
Boeing announced on the weekend that it plans to reduce its global workforce following the strike by its workers in Seattle, which has been going on for a month now. The plane manufacturer informed that it is cutting about 10 per cent of its worldwide workforce, which comes to roughly 17,000 jobs.
The layoffs come in anticipation of a third-quarter loss for the company, reported Livemint. Sharing the news, CEO Kelly Ortberg highlighted the need to ‘reset workforce levels to align with out financial reality’. The job cuts are expected to impact employees across levels, including executives, workers, and managers.
Further, Boeing also revealed several cost-cutting measures and production delays attributed to the strike. The strike, notably, includes 33,000 machinists from the International Association of Machinists and Aerospace Workers (IAM).
The workers began their strike on September 13 in response to a contract offer by the company which was rejected. After struggling with safety concerns regarding its commercial aircraft and issues in its Starliner space programme, the strike has made things more difficult for the manufacturer.
However, Ortberg maintained that the firm remained focused on the long-term competitiveness. “While our business is facing near-term challenges, we are making important strategic decisions for our future,” he said via a press release. The executive stated that employees will be informed in more detail about the layoffs in the coming week.
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The firm also said that its 777X aircraft is facing additional delays. The delivery of the aircraft was postponed to 2026 from 2025. Originally, the company planned to debut the much-awaited plane in service in 2020, however, there have been several delays in the process.
Boeing also informed that it will put a stop to production of its 767 Freighter in 2027 after completing current orders. The CEO promised to focus more on the company’s defense and space divisions which are expected to log significant losses in the third quarter.
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