Boeing said it is issuing layoff notices to employees who are included in the aerospace giant’s broader workforce reduction plan.
The approximately 17,000 employees included in the cuts were notified this week and are expected to leave the company in mid-January, Boeing said. The cuts, which come after a labor union strike, equate to 10% of its workforce.
“We are adjusting our workforce levels to align with our financial reality and a more focused set of priorities,” Boeing said in a statement to FOX Business.
“Our business is in a difficult position, and it is hard to overstate the challenges we face together,” Ortberg told staff, saying that the situation “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.”
The company has about 170,000 employees worldwide, many of them working in manufacturing facilities in South Carolina and Washington state.
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The company also announced the end of production of its 767 aircraft in 2027 after it completes the current orders for 29 jets.
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Boeing also delayed the rollout of its new 777X to 2026, instead of 2025. The delay comes after the recent discovery of a defective part that grounded test flights earlier this year.
The aerospace company faced a strike involving 33,000 workers in the Seattle area. The strike shut down production of the 737 Max, Boeing’s best-selling plane, and 777s and 767s. The strike was prompted after workers overwhelmingly refused tentative contract negotiations provided by the company.
The Max is a key revenue generator for Boeing, which raised more than $24 billion in late October to shore up its shaky finances and protect its investment grade rating following concerns from rating agencies.
Boeing has lurched from crisis to crisis this year, kicking off on Jan. 5 when a door panel blew off a 737 Max jet in midair. Since then, its CEO departed, its production has slowed as regulators investigated its safety culture and its largest union kicked off the strike on Sept. 13.
The strike’s end on Nov. 5 and the return of Boeing’s workers to the company’s Seattle-area assembly lines this week now support a slow revival of Max production.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BA | THE BOEING CO. | 139.97 | -5.20 | -3.58% |
FOX Business’ Jasmine Baehr and Reuters contributed to this report.
