Seattle, Monday. October 14, 2024— Boeing has announced plans to cut 17,000 jobs, representing 10% of its workforce, as the aerospace giant faces ongoing strikes and quality issues, a report by the BBC said.
It said that CEO Kelly Ortberg had informed staff via email that employees at all levels, including executives and managers, are at risk.
The company is also delaying the production of its 777X aircraft, with the first delivery now expected in 2026 due to challenges in development and the continuing work stoppage.
Boeing’s military equipment manufacturing arm is also reporting losses, adding to the company’s struggles.
Boeing’s month-long union strike, involving 33,000 workers demanding better pay, has severely impacted operations.
Negotiations have stalled, with union lead John Holden stating the strike could continue indefinitely.
The company’s struggles have attracted scrutiny from credit rating agencies, with S&P placing Boeing on CreditWatch, warning of a potential downgrade if the strike persists.
This comes after a recent congressional inquiry following a defect in a Boeing 737-MAX jet in January. Though no injuries occurred, the incident has heightened concerns around Boeing’s manufacturing quality.
