Boeing, Facing Crisis, to Dismiss 17,000 Workers
US plane manufacturer Boeing announced it will reduce its workforce by approximately 10% and postpone the introduction of a new jet due to increasing challenges. Read Full Article at RT.com.
TroibNews 
Boeing, the US aircraft manufacturer, has announced its intention to reduce its workforce by approximately 10% in the coming months. This decision comes in response to accumulating losses and a labor strike that has disrupted production of its most popular aircraft.
According to a memo from the new president and CEO Kelly Ortberg, the layoffs will affect both executive and managerial positions, as well as regular staff. Boeing currently employs nearly 170,000 individuals globally.
“Our business is in a difficult position, and it is hard to overstate the challenges we face together,” Ortberg stated, having been appointed CEO just two months prior. Shortly after taking on the role, 33,000 hourly employees initiated a strike.
“We reset our workforce levels to align with our financial reality and to a more focused set of priorities,” he added.
The CEO highlighted that this “tough” decision is part of a broader effort to implement structural changes aimed at maintaining the company's competitive edge and fulfilling customer orders over the long term.
In addition to workforce reductions, Ortberg announced that Boeing is postponing the development of its 777X plane until 2026 and will cease production of its commercial 767 freighters in 2027, following the completion of existing orders.
Earlier in the week, Boeing filed an unfair labor practice charge with the National Labor Relations Board against the union representing striking workers at its West Coast factories. The company accused the International Association of Machinists and Aerospace Workers of not bargaining in good faith during the month-long strike, claiming the union was “issuing misinformation to its members about the status of negotiations.”
Additionally, Boeing has retracted a contract offer made to the striking machinists, stating that further negotiations “do not make sense at this point.” The union has previously expressed concerns about Boeing's refusal to enhance wages, retirement benefits, and leave policies.
In a preliminary financial report released on Friday, Boeing projected an operating cash outflow of $1.3 billion for the third quarter and anticipated a loss of $9.97 per share.
Thomas Evans contributed to this report for TROIB News
According to a memo from the new president and CEO Kelly Ortberg, the layoffs will affect both executive and managerial positions, as well as regular staff. Boeing currently employs nearly 170,000 individuals globally.
“Our business is in a difficult position, and it is hard to overstate the challenges we face together,” Ortberg stated, having been appointed CEO just two months prior. Shortly after taking on the role, 33,000 hourly employees initiated a strike.
“We reset our workforce levels to align with our financial reality and to a more focused set of priorities,” he added.
The CEO highlighted that this “tough” decision is part of a broader effort to implement structural changes aimed at maintaining the company's competitive edge and fulfilling customer orders over the long term.
In addition to workforce reductions, Ortberg announced that Boeing is postponing the development of its 777X plane until 2026 and will cease production of its commercial 767 freighters in 2027, following the completion of existing orders.
Earlier in the week, Boeing filed an unfair labor practice charge with the National Labor Relations Board against the union representing striking workers at its West Coast factories. The company accused the International Association of Machinists and Aerospace Workers of not bargaining in good faith during the month-long strike, claiming the union was “issuing misinformation to its members about the status of negotiations.”
Additionally, Boeing has retracted a contract offer made to the striking machinists, stating that further negotiations “do not make sense at this point.” The union has previously expressed concerns about Boeing's refusal to enhance wages, retirement benefits, and leave policies.
In a preliminary financial report released on Friday, Boeing projected an operating cash outflow of $1.3 billion for the third quarter and anticipated a loss of $9.97 per share.
Thomas Evans contributed to this report for TROIB News
