Boeing to Cut 17,000 Jobs as Financial Woes Deepens Amid Workers' Strike

Arlington: Boeing has announced plans to lay off around 10% of its workforce, affecting approximately 17,000 employees, as the aerospace giant continues to battle financial challenges and ongoing worker's strike. The troubled company’s new CEO, Kelly Ortberg, delivered the news in a memo to staff, explaining that the layoffs will impact executives, managers, and general employees alike. 

“Our business is in a difficult position, and it is hard to overstate the challenges we face together,” Ortberg said in the memo. “This situation 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," he added.

Layoffs Due to Worker's Strike

Ortberg, who became Boeing's third CEO in five years in August, is facing significant pressure to steer the company through multiple crises. Boeing has lost more than $25 billion since 2019, and ongoing strikes by around 33,000 union machinists have crippled production. Union members have been on strike since mid-September, and recent negotiations have failed to produce a resolution.

Boeing to Face Delays in Key Projects

As a result, the company has also been forced to delay key projects. The release of Boeing's 777X aircraft will be postponed from 2025 to 2026, and the production of the 767 cargo jets will end in 2027 once current orders are completed.

Boeing Max Crashes Add More Difficulties

Boeing’s financial difficulties are further compounded by increased regulatory scrutiny. The Federal Aviation Administration (FAA) has intensified its oversight following a series of incidents involving the Max aircraft. In January, a panel blew out of a Max jet during an Alaska Airlines flight, leading to more investigations. Boeing has agreed to plead guilty to conspiracy charges related to the Max crashes and will pay a fine, but the company continues to face criticism from victims’ families who are demanding stricter penalties.

To add to its woes, NASA recently decided that a Boeing spacecraft was not safe enough for a mission to bring astronauts back from the International Space Station, further straining the company’s reputation.

(With Inputs from wire Agencies)