Boeing said Friday that it plans to cut 10% of its workforce. The financially ailing aerospace giant also announced sweeping changes to its commercial aircraft programs, including the 767 and previously-delayed 777X.
The company continues to face a month-long Machinists strike with Boeing’s chief operating officer Stephanie Pope saying it is looking at “next steps” due to unproductive negotiations.
In a letter to employees sent Friday afternoon, Boeing’s CEO Kelly Ortberg said the manufacturer is in a “difficult position.”
“Beyond navigating our current environment, restoring our company requires tough decisions and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term,” he added.
According to preliminary earnings figures, the company expects to report $5 billion in losses for the third quarter.
“We need to be clear-eyed about the work we face and realistic about the time it will take to achieve key milestones on the path to recovery,” Ortberg shared. “We also need to focus our resources on performing and innovating in the areas that are core to who we are, rather than spreading ourselves across too many efforts that can often result in underperformance and underinvestment.”
Ortberg said the company plans to lay off roughly 10% of its workforce, equating to 17,000 jobs. The cuts are set to take place over the next several months, he said, and will include executives, managers along with rank-and-file employees.
In addition, Boeing will further delay its Boeing 777X with initial delivery of the jet now expected in 2026, roughly a year behind schedule. Ortberg said the company is also permanently halting 767 production in 2027 after fulfilling current freighter orders.
