Boeing's Tumultuous Times: Job Cuts, Strikes, and Financial Struggles

Boeing is cutting 17,000 jobs and delaying its 777X jet deliveries due to financial strains from a strike affecting production. The company is facing losses of $5 billion and considering raising funds through stock sales. Its credit rating is at risk, and a deal to end the strike is critical.

Boeing plans to eliminate 17,000 jobs and delay the first deliveries of its 777X jet by a year, reporting $5 billion in third-quarter losses as it grapples with a persistent workforce strike. CEO Kelly Ortberg informed employees that workforce reductions are necessary due to the strike's impact on jet production.

The aerospace giant saw a 1.7% decline in share value following after-market trading. Boeing has registered $5 billion in charges affecting its commercial and defense sectors, aiming to reconcile its financial reality amidst job cuts.

Critical negotiations to cease the strike could alleviate Boeing's financial burden. The strike is estimated to be draining $1 billion monthly. Boeing's delivery of its 777X is postponed to 2026. The company is exploring options to raise around $10 billion through stock and equity sales to stabilize its ratings.

(With inputs from agencies.)