Boeing's Turbulent Path: Job Cuts, Delays, and Financial Challenges

Boeing will cut 17,000 jobs, delay its 777X jet deliveries by a year, and record $5 billion in losses as it struggles during an ongoing strike. The job cuts are part of efforts to align workforce levels with financial realities. The strike is costing Boeing $1 billion monthly.

Boeing plans to slash 17,000 jobs, delay the first deliveries of its 777X jet, and record $5 billion in losses amid an ongoing strike by 33,000 U.S. West Coast workers. The job reductions, CEO Kelly Ortberg said, are necessary to align with financial realities after production halts of its key jet models.

The company announced a further workforce reduction of 10%, impacting executives, managers, and employees. Boeing shares fell in after-market trading. The layoffs are part of Ortberg's strategy to reset relations with unions and employees. Analysts suggest the move pressures workers to resolve the strike swiftly.

Amid these challenges, Boeing filed an unfair-labor-practice charge against the machinists union and faces a potential downgrade in its credit rating. The company is also exploring financial options such as selling stocks and securities to raise capital. Boeing's operational and financial strategies are under scrutiny as it navigates a path to stability.

(With inputs from agencies.)