Money & The Economy

Problem-Ridden Boeing Announces Massive Job Cuts As Worker Strike Continues

Boeing announced Friday that it would slash 10% of its workforce, eliminating approximately 17,000 jobs amid a prolonged machinist strike.

Boeing CEO Kelly Ortberg revealed plans to slash the company’s workforce by 10% as the company grapples with financial and operational challenges, according to ABC News. This decision is intended to avert the next cycle of employee furloughs as the company seeks to streamline operations amid ongoing financial pressures.

Ortberg also announced delays in several key programs, including the launch of the 777X jet that has been postponed to 2026, while the 767 freighter program is set to conclude in 2027, ABC News reported. Additionally, substantial new losses are anticipated in Boeing’s defense, space & security sectors this quarter.

“Our business is in a difficult position, and it is hard to overstate the challenges we face together,” Ortberg said, the outlet reported. “Beyond navigating our current environment, restoring our company requires tough decisions and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term.”

Amid these announcements, Boeing projected a third-quarter revenue of $17.8 billion and reported a GAAP loss per share of $9.97, alongside operating cash flow of $1.3 billion. The workforce reduction follows a  standing strike by the International Association of Machinists, which is expected to cost Boeing and its shareholders $1.05 billion, with an additional $351 million in losses for workers and suppliers.

The company has also been under intense scrutiny due to several high-profile incidents, including a door plug being ripped off on a 737 Max 9 aircraft during an Alaska Airlines flight that led to a federal investigation. A Senate report released in September accused Boeing of sacrificing quality for speed in production and not providing adequate training, based on findings from a 2024 FAA special audit and a U.S. Senate subcommittee investigation.


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Mariane Angela

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Mariane Angela
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