Boeing to cut 17,000 jobs as strike hits finances

STORY: :: File

Boeing plans to cut 17,000 jobs, or 10% of its global workforce, and record $5 billion in losses in the third quarter, as the U.S. planemaker continues to spiral during a month-long strike.

In a message to employees, Boeing CEO Kelly Ortberg said downsizing was necessary to align with its “financial reality.”

:: September 12, 2024

It comes after production of the 737 MAX, 767 and 777 jets halted due to the ongoing strike by 33,000 U.S. West Coast workers.

Reaching a deal to end the work stoppage is critical for Boeing…

On Wednesday, it filed an unfair-labor-practice charge with the National Labor Relations Board accusing the machinists union of failing to bargain in good faith.

The International Association of Machinists and Aerospace Workers, which represents striking workers, described Boeing’s claims as groundless.

Ratings agency S&P estimated the strike is costing Boeing $1 billion a month, and it risks losing its prized investment-grade credit rating.

Boeing also notified customers that it expects first delivery of its 777X to be in 2026 due to challenges in development, the flight-test pause and the work stoppage.

:: NTSB

:: January 7, 2024

Even before the strike began on Sept. 13, the company was burning cash as it struggled to recover from a January mid-air panel blowout on a new plane that exposed weak safety protocols and spurred U.S. regulators to curb its production.

:: File

On Friday, Boeing faced a Texas court hearing with a judge who will decide whether to accept the planemaker’s offer to plead guilty to fraud under a deal with the Justice Department.

Boeing has agreed to pay up to a $487.2 million fine, spend at least $455 million on improving safety and face three years of court-supervised probation and independent oversight.