Boeing plans to reduce its workforce by 10%, affecting around 17,000 employees, as its financial losses worsen and a machinist strike that has halted production at its aircraft factories.
Boeing plans to lay off about 10% of its workers in the coming months as it continues to lose money and tries to deal with a strike that is crippling production of the company’s best-selling airline planes.
New CEO Kelly Ortberg told staff in a memo Friday that the job cuts will include executives, managers and employees:
- On the 777X program, the challenges we have faced in development, as well as from the flight test pause and ongoing work stoppage, will delay our program timeline. We have notified customers that we now expect first delivery in 2026.
- We plan to build and deliver the remaining 767 Freighters ordered by our customers and then conclude production of the commercial program in 2027. Production for the KC-46A Tanker will continue.
- In BDS, our performance on fixed-price development programs is simply not where it needs to be. We expect substantial new losses in BDS this quarter, driven by the work stoppage on commercial derivatives, continued program challenges and our decision to complete production on the 767 freighter. I will be providing additional oversight of this business and these programs.
Boeing has lost more than $25 billion since the start of 2019. Union machinists have been on strike since Sept. 14. Two days of talks this week failed to produce a deal.
