Boeing is set to reduce its workforce by 10%, cutting 17,000 jobs and postponing production as the company faces widespread challenges. In an email to employees, CEO Kelly Ortberg stated that jobs at all levels—including executives, managers, and staff—are at risk.
Boeing also flagged potential losses in its weapons and military equipment division and announced a delay in delivering its 777X aircraft. The company is dealing with ongoing strikes and rising concerns over the quality of its planes.
Ortberg confirmed in the email that the workforce reduction will occur “in the coming months.”
“Next week, your leadership team will share more tailored information about what this means for your organization,” he said, adding that it will not proceed with the next cycle of furloughs.
“The state of our business and our future recovery require tough actions,” said Mr Ortberg.
In addition to job cuts, Boeing is postponing production of its 777X aircraft due to “challenges in development, the flight test pause, and the ongoing work stoppage,” likely referring to the weeks-long strike that continues to impact operations.
“We have notified customers that we now expect first delivery in 2026,” he said.
A month-long union strike at Boeing has escalated as around 33,000 workers demand better pay packages.
Negotiations reportedly fell apart this week, with the union’s lead negotiator, John Holden, stating to Reuters, “We’re in this for the long haul, and our members understand that.”
The global credit ratings agency S&P has placed Boeing on CreditWatch, indicating that it may downgrade the company’s rating if the strike continues for an extended period.
Boeing is already facing congressional scrutiny following a January incident where a defect caused a panel to blow out on a Boeing 737-MAX shortly after takeoff. Fortunately, no one was injured, and then-CEO Dave Calhoun admitted that the company was “acknowledging our mistake.”