In a message to employees, Boeing President and CEO Kelly Ortberg has announced that the company is reducing the size of its total workforce by 10 percent. That means Boeing is cutting roughly 17,000 jobs, including executives and managers, over the coming months. Ortberg, who only took the helm back in August, explained that the company has to "make structural changes" to ensure it can "stay competitive" and deliver for its customers over the long term.
Ortberg announced the upcoming layoffs in the midst of a machinist strike that had shut down production in most of Boeing's plants, including the ones manufacturing its best-selling plane, the 737 Max. Around 33,000 union machinists are involved in the strike, which has been going on since mid-September. As AP explains, that's had a big impact on Boeing's pockets, since it gets paid for half of what a plane costs after it delivers a customer's order.
In addition to the layoffs, Ortberg announced that Boeing will delay the development of its 777X planes due to the challenges it has faced in development, along with the ongoing work stoppage. It now plans to deliver the new wide-body planes in 2026 instead of 2025.
Boeing started 2024 having to ground some 737 Max 9 planes after an Alaska Airlines door plug blew off while it's mid-flight. While there were no reported injuries, the Boeing plane had only been in service since November last year. In July, the company had agreed to plead guilty to a conspiracy to defraud the US government following two fatal crashed in 2018 and 2019 that killed 346 people. Boeing had also eaten hundreds of millions in losses as a result of Starliner's delayed return from the International Space Station. The company's first crewed flight was only supposed to last a few days, but hardware issues prevented it from sticking to the original timeline. In the end, the Starliner returned to Earth months later, without the astronauts it originally flew to the space station. Its crew will now come home on a SpaceX Dragon capsule in February next year.
This article originally appeared on Engadget at https://www.engadget.com/transportation/boeing-to-lay-off-17000-employees-to-stay-competitive-110033175.html?src=rss
