Boeing to Cut Jobs and Delay 777X Delivery

Boeing to Cut Jobs and Delay 777X Delivery , the renowned US aerospace company, has announced significant changes due to ongoing financial challenges and a crippling strike by factory workers. The company plans to lay off 10% of its global workforce, which translates to approximately 17,000 employees. This decision comes as Boeing faces substantial financial losses and operational disruptions.

The strike, initiated by the International Association of Machinists and Aerospace Workers, began on September 13 after workers overwhelmingly rejected a contract offer. This strike has halted the production of key aircraft models, including the Boeing 737 MAX, 767, and 777. Boeing’s CEO, David Calhoun, emphasized the need to “reset our workforce to align with our financial reality,” indicating that the layoffs will affect employees at all levels, including executives and managers.

In addition to the workforce reduction, Boeing has announced a delay in the delivery of its highly anticipated 777X aircraft. Originally scheduled for 2025, the first delivery is now expected in 2026. This delay is attributed to development challenges, a pause in flight testing, and the ongoing strike. The 777X has already faced significant certification issues, further complicating its launch.

Boeing’s financial outlook for the third quarter is grim, with expected revenue of $17.8 billion, a loss per share of $9.97, and negative operating cash flow of $1.3 billion. The company is also at risk of losing its investment-grade credit rating, with the strike costing an estimated $1 billion per month.

The strike and financial difficulties have forced Boeing to make tough decisions to remain competitive and deliver for its customers in the long term. The company is working to reach an agreement to end the strike, which is critical for its recovery and future operations.

For more details, you can read the full article on DW¹.

¹: Source: DW, “Boeing to lay off 10% of staff, delay first 777X delivery