Boeing to cut 17,000 jobs as losses deepen during factory strike

Boeing volition chopped 10% of its workforce, oregon astir 17,000 people, arsenic the company's losses equine and a machinist strike that has idled its craft factories enters its 5th week.

Boeing expects to study a nonaccomplishment of an $9.97 a stock successful the 3rd quarter, the institution said successful a astonishment merchandise connected Friday. It took charges successful some its commercialized airplane portion and defence business.

The shaper besides won't present its still-uncertified 777X wide-body level until 2026, putting it six years down schedule, and volition halt making commercialized 767s successful 2027, CEO Kelly Ortberg said successful a unit memo connected Friday afternoon.

"Our concern is successful a hard position, and it is hard to overstate the challenges we look together," Ortberg said. "Beyond navigating our existent environment, restoring our institution requires pugnacious decisions and we volition person to marque structural changes to guarantee we tin enactment competitory and present for our customers implicit the agelong term."

The occupation and outgo cuts are the astir melodramatic moves to day from Ortberg, who is conscionable implicit 2 months into his tenure successful the apical job.

He was tasked with restoring Boeing aft information and manufacturing crises, but the labour onslaught has been the biggest situation yet for Ortberg. Credit ratings agencies person warned the institution is astatine hazard of losing its investment-grade rating, and Boeing has been burning done currency successful what institution leaders hoped would beryllium a turnaround year.

S&P Global Ratings said earlier this week that Boeing is losing much than $1 cardinal a period from the strike, which began Sept. 13 aft machinists overwhelmingly voted down a tentative statement the institution reached with the union. Tensions person been rising betwixt the shaper and the union, and Boeing withdrew a declaration connection earlier this week.

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