Boeing, Facing Crisis, Plans to Dismiss 17,000 Workers
Boeing, the US aircraft manufacturer, has announced plans to reduce its workforce by around 10% and postpone the introduction of a new jet amid increasing challenges. Read Full Article at RT.com
TroibNews 
The U.S. manufacturer Boeing has announced plans to cut approximately 10% of its workforce in the coming months as the aerospace giant grapples with mounting losses and a strike that is impacting the production of its best-selling aircraft.
The layoffs will involve both executives and managers, as well as ordinary employees, based on a memo circulated by the company’s newly appointed president and CEO, Kelly Ortberg, on Friday. Boeing currently employs nearly 170,000 people globally.
“Our business is in a difficult position, and it is hard to overstate the challenges we face together,” stated Ortberg, who stepped into the CEO role two months ago. Just a month into his tenure, 33,000 hourly workers initiated a strike.
“We reset our workforce levels to align with our financial reality and to a more focused set of priorities,” he noted.
The CEO characterized the decision as “tough,” but aimed at implementing structural changes necessary for the company to maintain competitiveness and fulfill customer orders over the long term.
Additionally, Ortberg indicated that Boeing is postponing the development of its 777X airplane program until 2026 and plans to halt production of its commercial 767 freighters in 2027 after completing existing orders.
Earlier this week, Boeing filed an unfair labor practice charge with the National Labor Relations Board against the union representing its striking West Coast factory workers. The company claimed that the International Association of Machinists and Aerospace Workers had not bargained in good faith during the four-week work stoppage and accused it of “issuing misinformation to its members about the status of negotiations.”
Previously, the company withdrew a contract offer made to the striking machinists, asserting that further negotiations “do not make sense at this point.” The union had claimed that Boeing did not improve wages, retirement plans, or vacation and sick leave provisions.
In a preliminary financial report issued on Friday, the company projected an operating cash outflow of $1.3 billion for the third quarter and anticipated a loss of $9.97 per share.
Mark B Thomas for TROIB News
The layoffs will involve both executives and managers, as well as ordinary employees, based on a memo circulated by the company’s newly appointed president and CEO, Kelly Ortberg, on Friday. Boeing currently employs nearly 170,000 people globally.
“Our business is in a difficult position, and it is hard to overstate the challenges we face together,” stated Ortberg, who stepped into the CEO role two months ago. Just a month into his tenure, 33,000 hourly workers initiated a strike.
“We reset our workforce levels to align with our financial reality and to a more focused set of priorities,” he noted.
The CEO characterized the decision as “tough,” but aimed at implementing structural changes necessary for the company to maintain competitiveness and fulfill customer orders over the long term.
Additionally, Ortberg indicated that Boeing is postponing the development of its 777X airplane program until 2026 and plans to halt production of its commercial 767 freighters in 2027 after completing existing orders.
Earlier this week, Boeing filed an unfair labor practice charge with the National Labor Relations Board against the union representing its striking West Coast factory workers. The company claimed that the International Association of Machinists and Aerospace Workers had not bargained in good faith during the four-week work stoppage and accused it of “issuing misinformation to its members about the status of negotiations.”
Previously, the company withdrew a contract offer made to the striking machinists, asserting that further negotiations “do not make sense at this point.” The union had claimed that Boeing did not improve wages, retirement plans, or vacation and sick leave provisions.
In a preliminary financial report issued on Friday, the company projected an operating cash outflow of $1.3 billion for the third quarter and anticipated a loss of $9.97 per share.
Mark B Thomas for TROIB News
