Boeing has announced plans to cut approximately 10 percent of its global workforce, translating to around 17,000 jobs, amid ongoing financial struggles and production setbacks exacerbated by strikes. This decision was communicated by CEO Kelly Ortberg in a memo to employees on October 11, 2024. The layoffs will affect executives, managers, and staff across various departments and are expected to occur over the coming months.
The aerospace giant is facing significant challenges, having reported a loss of over $25 billion since 2019. The recent announcement follows a prolonged strike involving about 33,000 machinists that began on September 14, severely impacting the production of key aircraft models, including the 737 Max and 777. The strike has compounded Boeing’s financial woes, leading to a cash burn of $1.3 billion in the third quarter alone.
In addition to the layoffs, Boeing is also delaying the rollout of its new 777X aircraft until 2026 and halting production of the 767 cargo version after fulfilling current orders. Ortberg emphasized in his memo that these tough decisions are necessary for the company to remain competitive and align with its financial realities.
The layoffs come at a time when Boeing is grappling with increased regulatory scrutiny following manufacturing issues and federal investigations related to past incidents. As the company navigates this turbulent period, it faces mounting pressure to restore its reputation and stabilize its operations.
