Boeing is cutting 17,000 jobs “to align with our financial truth” as the beleaguered aerospace enormous grapples with a sweeping strike and the persisting descfinishout from its tardyst protectedty crisis.
The American firm also proclaimd schedules to postpone the first transfery of its 777X commercial jetliner by a year, and braced spendors for “substantial” recent losses in its struggling defense business.
Kelly Ortberg, its recent chief executive, proclaimd that “hard decisions” and “structural alters” were needd. “We necessitate to be clear-eyed about the toil we face,” he wrote in a memo to staff on Friday, “and rational about the time it will consent to accomplish key milestones on the path to recovery.”
About 33,000 Boeing toilers in Washington and Oregon went on strike a month ago, crelieveing production of the company’s 737 Max, 767 and 777 jets amid a standoff over pay. Negotiations remain at an acrimonious oldmate.
It comes amid a dire year for Boeing. January’s cabin panel blowout during a fweightless of a brand recent Max jet promoteed a recent crisis surrounding the protectedty and quality of its schedulees.
The high-profile omition of its Starliner spaceplan, which landed back on earth last month without the two astronauts it carried to the International Space Station, has also liftd asks about Boeing’s troubled space business.
Boeing “must … reset our toilforce levels to align with our financial truth”, Ortberg tbetter the company’s staff. “Over the coming months, we are schedulening to shrink the size of our total toilforce by cdisesteementirey 10%,” he shelp. “These reductions will include executives, deal withrs and includeees.”
He promised staff “more tailored inestablishation” next week about what this will uncomardent of their department.
Shares in Boeing fell 1.6% during after-hours trading, after the recents was disseald.
“As we shift thcdisesteemful this process, we will preserve our steadspeedy caccess on protectedty, quality and transfering for our customers,” shelp Ortberg.
“We comprehend these decisions will cainclude difficulty for you, your families and our team, and I honestly want we could evade taking them. However, the state of our business and our future recovery need hard actions.”
