Boeing announced Friday that it will eliminate 17,000 jobs—10% of its workforce—as it deals with deepening losses. Machinists are on strike against the company, which already was dealing with damaging safety and manufacturing problems. Boeing has lost more than $25 billion since the start of 2019, per the AP. "Our business is in a difficult position, and it is hard to overstate the challenges we face together," CEO Kelly Ortberg told employees in a memo Friday afternoon, CNBC reports. The moves planned affect:
- The 777X wide-body plane: The project is being delayed, and the uncertified new plane will be scheduled for delivery in 2026. That means it will be some six years behind schedule. Production had been halted because of the strike.
- Commercial 767 freighters: The cargo plane will go out of production in 2027, once remaining 29 orders are filled, per the Wall Street Journal.
- The workforce: The job cuts will take place "over the coming months," Ortberg said, and will affect executives, managers, and other employees. Boeing announced furloughs of nonunion employees last month, as well as a hiring freeze. The furlough program is being suspended.
- The bottom line: The company will book several billion dollars in pretax charges connected to the two jets and $2 billion in write-offs tied to defense programs. Those charges will mean a quarterly net loss of about $6 billion, per CNBC. Boeing stock has fallen 40% this year.
The company also will make structural changes, Ortberg's memo said. "We need to be clear-eyed about the work we face and realistic about the time it will take to achieve key milestones," he wrote. (More
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