Boeing Will Cut 17,000 Employees In The Upcoming Months

Boeing has announced it will cut 17,000 employees over the next several months.

CEO Kelly Ortberg shared “Our business is in a difficult position, and it is hard to overstate the challenges we face together.”

Ortberg added, “Beyond navigating our current environment, restoring our company requires tough decisions and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term.”

The cuts come as Boeing faces several lawsuits over safety breaches.

The company is also facing a backlash over the failure of its astronaut capsule, Starliner, which left two astronauts at the ISS.

Harris was not successful in delaying this announcement until after the election…

Boeing to Slash 17,000 Jobs, End 767 Cargo Plane Production

Boeing also announced it will further delay the launch of its new model 777X plane.https://t.co/gUdaAKtl1H pic.twitter.com/CuY7WcPo14

— Tony Seruga (@TonySeruga) October 11, 2024

🚨#BREAKING: Boeing announced that it's cutting more than 17,000 jobs, or 10% of its workforce

— R A W S A L E R T S (@rawsalerts) October 11, 2024

Check out what ABC News reported:

Boeing will reduce the size of its total workforce by 10% over the coming months, CEO Kelly Ortberg said in a letter to employees on Friday.

That amounts to around 17,000 jobs, based on the company’s December 2023 total workforce numbers.

Ortberg said due to the workforce reductions, Boeing would not proceed with the next cycle of furloughs.

Ortberg also said the 777X program would be delayed until 2026, the 767 freighter program would end in 2027 and the company expects “substantial new losses” in Boeing Defense, Space & Security this quarter.

“Our business is in a difficult position, and it is hard to overstate the challenges we face together,” said Ortberg. “Beyond navigating our current environment, restoring our company requires tough decisions and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term.”

The company said Friday it expects to report third-quarter revenue of $17.8 billion, GAAP loss per share of $9.97 and operating cash flow of $1.3 billion.

Whoa…. @Boeing to cut 17,000 jobs… Now that is a mass layoff!

They are also delays the 777X and cancels the 767.

With new CEO Kelly Ortberg running the show, some of his early moves are raising eyebrows internally.

Change is coming fast, and not everyone’s ready for it.… pic.twitter.com/wl9p2dcBis

— Amanda Goodall (@thejobchick) October 11, 2024

Per CNBC:

Boeing
will cut 10% of its workforce, or about 17,000 people, as the company’s losses mount and a machinist strike that has idled its aircraft factories enters its fifth week. It will also push back the long-delayed launch of its new wide-body airplane.

The manufacturer will not deliver its still-uncertified 777X wide-body plane, which has customers that include Lufthansa and Emirates, until 2026, putting it some six years behind schedule. The company in August paused flight tests of the aircraft when it discovered structural damage in one of them. It will stop making commercial 767 freighters in 2027 after it fulfills remaining orders, CEO Kelly Ortberg said in a staff memo Friday afternoon.

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“Our business is in a difficult position, and it is hard to overstate the challenges we face together,” Ortberg said. “Beyond navigating our current environment, restoring our company requires tough decisions and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term.”

Boeing expects to report a loss of $9.97 a share in the third quarter, the company said in a surprise release Friday. It expects to report a pretax charge of $3 billion in the commercial airplane unit and $2 billion for its defense business.