Boeing plans to cut its workforce by 10%, resulting in the loss of 17,000 jobs, and will delay production as the aircraft manufacturer confronts various challenges within its business. Chief Executive Kelly Ortberg informed staff via email that jobs across all levels, including “executives, managers, and employees,” are at risk.
The company also warned of potential losses in its weapons and military equipment manufacturing division and has pushed back the delivery date for its 777X plane. This announcement comes amid ongoing strikes by staff and increasing concerns about the quality of its aircraft.
In the email, Ortberg stated that the company would reduce its headcount “over the coming months,” and he added that the leadership team would provide more specific information about the impact on individual organizations next week. He confirmed that the company would not proceed with the next cycle of furloughs, emphasizing that “the state of our business and our future recovery require tough actions.”
Alongside job cuts, Boeing is delaying the production of its 777X model due to “the challenges we have faced in development, as well as from the flight test pause and ongoing work stoppage,” likely referencing the strike that has persisted for several weeks. “We have notified customers that we now expect first delivery in 2026,” Ortberg noted.
The union strike at Boeing has become increasingly contentious, with around 33,000 workers demanding a better pay package. Negotiations appeared to stall this week, and the union’s lead negotiator, John Holden, told Reuters, “We’re in this for the long haul, and our members understand that.”
Additionally, global credit ratings agency S&P has placed Boeing on CreditWatch, indicating that the company could face a downgrade in its rating if the strike continues. Boeing was already under congressional scrutiny following a January incident in which a defect caused a panel to blow out on a Boeing 737-MAX shortly after takeoff, though no one was injured. At that time, Boeing’s then-CEO Dave Calhoun acknowledged the company’s mistake.
