Due to widespread difficulties, Boeing´s workforce cuts jobs by 10%, removing 17,000 positions. CEO Kelly Ortberg informed staff that management and senior roles are at risk in an email. The company also reported 777X jet manufacturing delays and hinted at gun and military equipment losses.
In an email, Ortberg said that layoffs would happen over the coming months. He said that the leadership team would soon share more specific details on how it would affect different departments. He told workers that the corporation would not use its next furlough cycle, indicating that layoffs were the best solution.
Furthermore, the primary reasons Boeing has given for delaying the 777X aircraft manufacture include development challenges, a halt in flight testing, and an ongoing labor disruption. The business has pushed back the original planned delivery date of the 777X to 2026. Ortberg verified that the revised delivery timeline was shared with customers.
Boeing is grappling with internal concerns as well as a contentious month-long union strike by 33,000 employees seeking better wages. Union President John Holden claimed that the workers are dedicated to a long-term campaign, resulting in a halt in discussions this week. Strikes and production delays are straining the company’s resources and making recovery more difficult.S&P, a global credit rating agency, has placed Boeing on CreditWatch, indicating the strike might lower its rating. The firm is already under severe scrutiny by politicians, and as Boeing´s workforce cuts jobs, it adds gasoline to the fire. A panel on a Boeing 737-MAX aircraft burst off after takeoff earlier this year owing to a manufacturing defect, raising safety concerns. Boeing admitted the mistake, increasing the company’s already heavy workload, even though no one was wounded. Boeing’s leadership is preparing to take aggressive actions to stabilize the corporation and address long-standing issues.
