Boeing plans to cut around 10 percent of workforce due to program delays, labor strikes
Date
10/13/2024 4:34:29 AM
(MENAFN) Boeing, the US-based aerospace giant, plans to cut approximately 10 percent of its workforce due to program delays and ongoing labor strikes, as announced by CEO Kelly Ortberg in a message to employees. He acknowledged the company's challenging situation, particularly the impact of a prolonged strike involving 33,000 hourly workers, and stated that tough decisions and structural changes are necessary to maintain competitiveness and meet long-term customer commitments.
Although Ortberg did not specify the exact number of job cuts, the workforce reduction could affect thousands of employees, given that Boeing employed 171,000 people globally at the beginning of the year, with 147,000 of them based in the US. He noted that the company’s 777X program has faced significant challenges, including delays in development and a halt in flight testing, which have pushed the first delivery date to 2026.
Boeing also plans to fulfill its remaining 767 freighter orders while winding down the commercial production of that model by 2027. Meanwhile, production of the KC-46A tanker, a significant military contract for the company, will continue as scheduled.
Ortberg recognized the difficult road ahead, stressing that Boeing must take decisive steps to navigate the current challenges and position itself for future success.
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