Boeing has revealed plans to cut 17,000 jobs as the company continues to grapple with financial losses. CEO Kelly Ortberg made the announcement in a memo to employees, emphasizing that the company is in a challenging situation. “Our business is in a difficult position, and it is hard to overstate the challenges we face together,” Ortberg wrote. The layoffs are part of broader efforts to address Boeing’s ongoing financial struggles.
The decision to lay off workers comes as the company faces a strike from the International Association of Machinists and Aerospace Workers District 751, which represents nearly 33,000 Boeing employees. The union rejected Boeing’s offer of a 25% wage increase over the next four years, pushing instead for a 40% increase. The strike, now lasting nearly a month, is reportedly costing Boeing about $1 billion every month.
To cope with these financial pressures, Boeing had previously instituted one-week furloughs for employees. However, Ortberg stated that the furloughs would now end with the implementation of these layoffs. The company is focusing on long-term stability, which includes making difficult decisions regarding its workforce.
Ortberg, who took over as CEO in August, has been leading Boeing through a difficult period marked by financial losses and legal troubles. Boeing has lost $25 billion over the last five years, and the company’s stock price dropped by almost $10 per share in the third quarter of 2024 alone. The layoffs are part of a larger strategy to help Boeing recover from these losses.
Boeing’s financial troubles have been exacerbated by ongoing labor disputes and the aftermath of congressional inquiries related to two 737 Max jet crashes. The company’s recovery will likely depend on how it navigates both its internal and external challenges in the coming months.
