Boeing to cut approximately 17,000 jobs over the coming months
Written by ABC Audio All Rights Reserved on October 11, 2024
(NEW YORK) — Boeing will reduce the size of its total workforce by 10% over the coming months, CEO Kelly Ortberg said in a letter to employees on Friday.
That amounts to around 17,000 jobs, based on the company’s December 2023 total workforce numbers.
Ortberg said due to the workforce reductions, Boeing would not proceed with the next cycle of furloughs.
Ortberg also said the 777X program would be delayed until 2026, the 767 freighter program would end in 2027 and the company expects “substantial new losses” in Boeing Defense, Space & Security this quarter.
“Our business is in a difficult position, and it is hard to overstate the challenges we face together,” said Ortberg. “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.”
The company said Friday it expects to report third-quarter revenue of $17.8 billion, GAAP loss per share of $9.97 and operating cash flow of $1.3 billion.
The announcement comes after tens of thousands of Boeing workers voted to strike last month after rejecting the proposed contract.
The company has endured tremendous financial pressures and extra scrutiny following a series of failures involving its aircraft and supply.
On Jan. 5, a door plug blew out of the company’s 737 Max 9 aircraft at around 15,000 feet in altitude during an Alaska Airlines flight, prompting a federal investigation.
Boeing Starliner, a spacecraft that was being developed for the NASA Commercial Crew Program, was hit with several delays and rising costs before its first crewed launch to the International Space Station in June.
However the spacecraft was forced to return without its astronauts Barry “Butch” Wilmore and Sunita “Suni” Williams last month after tests showed there was too much risk with regard to the vehicle’s thrusters for re-entry.
Boeing announced last month that Ted Colbert, the president and chief executive officer of Boeing Defense, Space & Security, will be leaving the beleaguered company.
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