Boeing's Turbulent Times: Layoffs and Strikes Amid Multi-Billion Losses

Boeing plans to cut about 10% of its workforce as it faces financial losses and a crippling strike affecting its plane production lines. CEO Kelly Ortberg announced the layoffs by memo, stating that the upcoming job cuts will halt temporary furloughs. The debut of the 777X plane is delayed to 2026.

Boeing is set to lay off approximately 10% of its workforce over the next few months, citing ongoing financial losses and a strike hampering production of its best-selling commercial jets.

In a memo issued by CEO Kelly Ortberg, employees learned that reductions will impact executives and managers, with layoffs replacing temporary furloughs previously imposed. The production timeline for the new 777X aircraft is postponed to 2026.

Additionally, the company will cease manufacturing the cargo variant of its 767 aircraft by 2027 after fulfilling existing orders. Boeing faces over $25 billion in losses since 2019, compounded by a machinists' strike commencing on September 14, with recent negotiations failing to secure an agreement.

(With inputs from agencies.)