The company Boeing has planned to reduce its workforce by 10%. In this reduction, around 17000 employees will be laid off from the company. Boeing announced the job cuts on Friday. Chief Executive Kelly Ortberg said that the aviation giant Boeing is going through a lot of financial crisis these days, so it has taken this decision.
Job Cut: Aviation giant Boeing plans to cut its workforce by ten percent, with about 17,000 employees being laid off. Boeing announced the job cuts on Friday. The company said the decision was taken after it suffered a major loss in the third quarter in the wake of the strike in the Seattle area.
Boeing will also stop production of cargo planes
CEO Kelly Ortberg issued a statement to employees on Friday, in which he said that after completing the current orders, Boeing will also stop production of commercial 767 cargo planes in 2027. He said the company is facing mounting losses and a strike by machinists, which halted operations at aircraft factories for five weeks.
Chief Executive Kelly Ortberg said aviation giant Boeing is going through a lot of financial trouble these days, which will require the workforce levels to be restored to correct it. He said the 17,000 job cuts globally would include executives, managers and employees.
The company said a nearly month-long strike by 33,000 workers had delayed aircraft production, adding to the company’s problems. Boeing staff from the International Association of Machinists and Aerospace Workers walked off the job on September 13 after overwhelmingly rejecting a contract offer.
Company facing challenges – CEO
Ortberg said in a press release that our business is facing near-term challenges, we are making important strategic decisions for our future and doing the work we must do to restore our company. These decisive actions, along with major structural changes in our business, are necessary to remain competitive in the long term.
Boeing shares fall 1.7 percent
As a result of the strike, Boeing said it is extending the first delivery of the 777X from 2025 to 2026. The company plans to stop production of the 767 freighter in 2027 after production on existing orders is completed. At the same time, Boeing shares fell 1.7 percent after the company announced the cuts.
