Boeing Cuts Jobs Amid Financial Turbulence

Boeing announces a 10% workforce reduction—17,000 jobs—as a strategic move to manage financial challenges. The planemaker faces ongoing strikes, delaying its 777X jet's delivery, and anticipates significant losses in the third quarter. The layoffs aim to pressure the workforce into resolution as Boeing navigates financial and labor disputes.

Boeing is set to cut 17,000 jobs, representing 10% of its global workforce, as part of a strategic reorganization due to financial pressures stemming from ongoing labor strikes. CEO Kelly Ortberg communicated the necessity to align with fiscal realities following halted production of several aircraft models.

The company has recorded substantial losses, including a $5 billion pre-tax charge related to its defense and commercial divisions. With a strike impacting production, Boeing has postponed its 777X jet delivery to 2026 and is actively dealing with union disputes, including filing an unfair-labor-practice charge.

Boeing's financial outlook remains precarious, prompting considerations for raising capital through stock sales. Analysts project a need for $10-15 billion to sustain its credit rating. The resolution of labor strikes and strategic restructuring remain pivotal in restoring Boeing's market stability.

(With inputs from agencies.)