Rabat - Boeing plans to cut 17,000 jobs—around 10% of its global workforce—and delay the first deliveries of its 777X aircraft by a year.
The company faces pressing financial strain which led to a strike involving 33,000 workers on the U.S. West Coast. This labor dispute has halted production of key aircraft models, including the 737 MAX, 767, and 777.
CEO Kelly Ortberg, who took the reins in August, said the workforce reductions are necessary to "align with our financial reality." The layoffs will affect employees at all levels of the company. Boeing shares dropped 1.1% in after-hours trading following the announcement.
The strike, now in its second month, has disrupted production and cost Boeing about $1 billion each month, according to estimates provided by agency S&P.
The scandal-ridden company has accused the union of failing to negotiate in good faith, filing a complaint with the National Labor Relations Board.
Boeing is facing mounting pressure to reach an agreement, especially with analysts predicting the strike could end soon as workers face the risk of being included in the upcoming job cuts.
Financially burdened with over $60 billion in debt, Boeing may need to raise capital to stabilize its operations.
Boeing had previously encountered certification challenges with the 777X, causing delays to the jet's launch.
The company has been embroiled in scandal in recent times as the company’s cost-cutting had severe impacts on the safety standards of planes delivered to clients. This resulted in the deaths of 346 passengers and a recent event where a door fell off a plane in mid-flight.
Meanwhile, the International Association of Machinists and Aerospace Workers (IAM), which is leading the strike, has criticized Boeing's handling of negotiations, accusing the company of obstructing a resolution.
In addition, Reuters reported that Boeing is exploring ways to raise billions through stock sales and equity-like securities to address its financial challenges.
The company faces pressing financial strain which led to a strike involving 33,000 workers on the U.S. West Coast. This labor dispute has halted production of key aircraft models, including the 737 MAX, 767, and 777.
CEO Kelly Ortberg, who took the reins in August, said the workforce reductions are necessary to "align with our financial reality." The layoffs will affect employees at all levels of the company. Boeing shares dropped 1.1% in after-hours trading following the announcement.
The strike, now in its second month, has disrupted production and cost Boeing about $1 billion each month, according to estimates provided by agency S&P.
The scandal-ridden company has accused the union of failing to negotiate in good faith, filing a complaint with the National Labor Relations Board.
Boeing is facing mounting pressure to reach an agreement, especially with analysts predicting the strike could end soon as workers face the risk of being included in the upcoming job cuts.
Financially burdened with over $60 billion in debt, Boeing may need to raise capital to stabilize its operations.
Boeing had previously encountered certification challenges with the 777X, causing delays to the jet's launch.
The company has been embroiled in scandal in recent times as the company’s cost-cutting had severe impacts on the safety standards of planes delivered to clients. This resulted in the deaths of 346 passengers and a recent event where a door fell off a plane in mid-flight.
Meanwhile, the International Association of Machinists and Aerospace Workers (IAM), which is leading the strike, has criticized Boeing's handling of negotiations, accusing the company of obstructing a resolution.
In addition, Reuters reported that Boeing is exploring ways to raise billions through stock sales and equity-like securities to address its financial challenges.
