Aviation giant Boeing has planned to cut its workforce by ten percent, in which about 17,000 employees will be shown the way out of the company. Boeing announced job cuts on Friday. The company said the decision has been taken after it suffered a huge loss in the third quarter in view of the strike in the Seattle area.
Boeing will also stop production of cargo planes
CEO Kelly Ortberg issued a release to employees Friday in which he said Boeing will also cease production of commercial 767 freighter planes in 2027, after completing existing orders. He said the company was facing mounting losses and a strike by machinists, due to which operations at aircraft factories were halted for five weeks.
Chief Executive Kelly Ortberg said that aviation giant Boeing is going through a lot of financial crisis these days, to correct which the level of workforce will have to be adjusted again. He said the cuts of 17,000 positions 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 proposal.
Company facing challenges – CEO
“While our business faces near-term challenges, we are making important strategic decisions for our future and doing the work we must to restore our company,” Ortberg said in a press release. These decisive actions, coupled with major structural changes to our business, are necessary to remain competitive in the long term.
Boeing shares fell 1.7 percent
As a result of the strike, Boeing said it was pushing first deliveries of the 777X from 2025 to 2026. The company plans to end production of the 767 freighter in 2027 after production on existing orders is completed. At the same time, after the company’s announcement of cutbacks, Boeing’s shares have fallen by 1.7 percent.