Boeing is set to cut approximately 17,000 jobs, constituting about 10% of its global workforce. This drastic measure comes on the heels of the company recording an alarming $5 billion in losses in the third quarter.
These cuts are deemed necessary by CEO Kelly Ortberg to realign the company with its current financial situation amid significant operational challenges.
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Impact of the Ongoing Strike
The decision to downsize follows a month-long strike involving 33,000 west coast workers, which has severely disrupted the production of key commercial aircraft such as the 737 MAX, 767, and 777 jets.
Ortberg indicated in his message to employees that the cutting of jobs would encompass various levels of the organization, including executives, managers, and regular employees. The ongoing strike is a primary driver of this decision, placing additional pressure on employees to seek resolution.
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Boeing: Financial Outlook and Future Strategy
As Boeing prepares for these workforce adjustments, they have also revised their revenue expectations for the upcoming quarter. The company anticipates revenue of $17.8 billion and a loss per share of $9.97.
This forecast signals the necessity for urgent measures to restore stability. Additionally, analysts predict that these layoffs might serve as a catalyst for striking workers to negotiate an end to the strike, emphasizing the critical need for Boeing to reach an agreement soon.
