Boeing to Cut 17,000 Jobs Amid Ongoing Strike and Production Delays

Boeing has announced plans to reduce its workforce by 10%, resulting in approximately 17,000 job cuts, as the aerospace giant contends with mounting challenges across its business. The decision comes as the company faces ongoing labour strikes and delays in the production of its flagship 777X aircraft.

In an internal email, CEO Kelly Ortberg informed employees that the job cuts would affect staff at all levels, including executives, managers, and frontline workers. Ortberg emphasised that the reduction in headcount would be implemented “over the coming months” and that further details would be shared with employees next week.

“We are facing tough decisions as we navigate the current state of our business and our future recovery,” Ortberg wrote, adding that the company will not proceed with the next cycle of furloughs.

Boeing’s troubles have been exacerbated by a month-long strike involving 33,000 workers, who are pushing for improved pay and working conditions. The strike has contributed to production delays, particularly for the 777X, with the company notifying customers that deliveries of the aircraft, initially expected sooner, are now slated for 2026.

“The challenges we have faced in development, combined with the ongoing work stoppage and the pause in flight tests, have forced us to delay the 777X,” Ortberg explained.

The company is also struggling with losses in its weapons and military equipment division, further compounding its financial pressures. Boeing has come under increasing scrutiny, with the global credit ratings agency S&P placing the company on CreditWatch. This signals the possibility of a ratings downgrade if the strike continues and production issues persist.

Union negotiations have reached a stalemate, with no resolution in sight. John Holden, the union’s lead negotiator, stated, “We are in this for the long haul, and our members understand that.”

Boeing has already been under the spotlight following a January incident where a defect caused a panel to blow out on a 737-MAX shortly after takeoff. While no injuries were reported, the event raised concerns about the company’s safety and quality control standards, which are now under congressional scrutiny.

As Boeing grapples with internal and external pressures, the coming months will be pivotal in determining the company’s path to recovery.