Boeing to cut 10% workforce, delay 777X delivery as strike takes toll
Al Jazeera
The strike is costing Boeing $1bn a month, making it critical for the firm to end the work stoppage.
United States-based plane maker Boeing will cut 17,000 jobs, or 10 percent of its global workforce, delay first delivery of its 777X jet by a year and announced substantial new losses in its defence business as a monthlong strike batters company finances, CEO Kelly Ortberg has said.
On Friday, in a message to employees, Ortberg said the company must reset its workforce levels “to align with our financial reality” after a strike by 33,000 US West Coast workers shuttered production of its 737 MAX, 767 and 777 jets.
“We reset our workforce levels to align with our financial reality and to a more focused set of priorities. Over the coming months, we are planning to reduce the size of our total workforce by roughly 10 percent. These reductions will include executives, managers and employees,” Ortberg’s message said.
Boeing shares fell 2.3 percent in after-market trading.
Ortberg also said Boeing has notified customers that the company now expects the first delivery of its 777X in 2026 due to the challenges it has faced in development, as well as the flight-test pause and ongoing work stoppage.
