Boeing Slashes Jobs Amid Financial Strife: 777X Delay & Defense Losses

Boeing is cutting 17,000 jobs, delaying the 777X jet delivery, and reporting new defense business losses due to a strike impacting finances. CEO Kelly Ortberg explains the workforce alignment strategy. Efforts are underway to end the strike, costing $1 billion monthly and risking credit ratings.

Boeing, a leading U.S. planemaker, is facing significant financial challenges, prompting the company to cut 17,000 jobs, or 10% of its global workforce. The decision, announced by CEO Kelly Ortberg, comes as a month-long strike by 33,000 U.S. West Coast workers severely impacts operations.

Ortberg communicated to employees that these workforce reductions, including executives and managers, are necessary to align with the company's current financial reality. The job cuts coincide with Boeing's decision to delay the first delivery of its 777X jet to 2026, citing development challenges and a flight-test pause.

The strike, costing Boeing $1 billion per month, poses a threat to its investment-grade credit rating. Apart from financial losses and delays, Boeing also plans to conclude its 767 freighter program by 2027, while maintaining KC-46A Tanker production. Efforts to negotiate an end to the strike remain a priority.

(With inputs from agencies.)