In a significant development in the ongoing trend of corporate layoffs, Boeing has announced substantial cuts to its workforce, marking a challenging time for the aerospace giant.
The company confirms it will reduce its workforce by 10 percent, translating to approximately 17,000 jobs. The layoffs will affect executives, middle management, and various employees across the organization.
The announcement came from President and CEO Kelly Ortberg, who emphasized the need for “tough decisions” and “structural changes” to ensure the company’s competitiveness. He revealed that the launch of the new 777X plane has been postponed to 2026, and Boeing will cease production of the 767 Freighter after completing existing orders.
According to reports, Boeing has faced significant financial losses, amounting to $25 billion since the beginning of 2019. This news coincides with the ongoing strike by approximately 33,000 union machinists, which has halted production of some of Boeing’s best-selling aircraft. Despite the strike, production of the 787s continues at a non-union facility. Striking workers are advocating for wage increases to keep pace with rising living costs.
This year has been particularly disastrous for Boeing. In January, the company faced scrutiny after Alaska Airlines had to ground its 737 Max 9 planes due to a midair incident involving a door plug. Additionally, in July, Boeing admitted to conspiracy charges related to two fatal crashes that occurred in 2018 and 2019, resulting in the tragic loss of 346 lives. The company has also incurred substantial losses associated with the Starliner program, notably delaying a planned mission that would have stranded two astronauts on the International Space Station until February 2025.
