Boeing's Workforce Restructuring Amidst Strike Challenges

Boeing plans to cut 17,000 jobs, amounting to 10% of its global workforce, due to strained financial conditions. A month-long strike by West Coast workers has delayed Boeing's 777X jet delivery and created significant losses in its defense sector, necessitating these drastic reductions.

Boeing is set to implement a significant workforce reduction, cutting 17,000 jobs globally, or about 10% of its workforce. This decision comes as the company faces serious financial challenges following a prolonged strike.

In a message to employees, CEO Kelly Ortberg emphasized the need to adjust workforce levels to meet the financial demands imposed by the strike. The production of key models, including the 737 MAX and 777 jets, was halted, leading to the decision to shed jobs among executives, managers, and workers alike.

Moreover, Boeing has informed its clients of a one-year delay in the 777X jet's first delivery, now expected in 2026. This setback results from both developmental challenges and the recent work stoppage, according to Ortberg.

(With inputs from agencies.)