Aircraft giant Boeing will cut 10% of its workforce and reduce production in the coming months amid major financial problems and an ongoing strike, the company said on Friday.
Boeing, which has faced a series of major aircraft failures, including a door blowout on an Alaskan Airlines flight in January, made major losses in the third quarter of 2024.
“Our business is in a difficult position, and it's hard to overstate the challenges we face together,” Boeing CEO Kelly Ortberg said in a Friday memo to staff obtained by CNN. “Restoring our company requires tough decisions and we must make structural changes to ensure we can remain competitive.”
Ortberg, who took over in August as CEO Dave Calhoun left amid intense regulatory pressure, he did not identify the exact number of layoffs that would take place, but noted that workers at all levels of the business could expect details next week.
More than 33,000 Boeing workers voted in large numbers authorize a strike last month. Almost 20% of Boeing's workforce was suddenly on the picket line. Their union, the International Association of Machinists and Aerospace Operators, he cited stagnant wages, safety concerns and unfair labor practices as the reason for the work stoppage.
Talks between Boeing and the IAM broke down earlier this week, and Boeing withdrew his most recent offer to the union. The work stoppage was cited in a press release as a factor in layoffs, delaying and ending the production of several Boeing aircraft.
Representatives of other unions of Boeing employees were disappointed by the news of layoffs, and by the company to blame the striking workers, not the managerial missteps.
“Rather than resolve the IAM strike and focus the company's resources on rebuilding the trust of regulators and customers, Boeing's leadership has decided to damage every aspect of the company,” the director of the Society of Employees of Aerospace Engineering Professional Ray Goforth said in a statement. Seattle Times.
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