Boeing to cut 10% of workforce amid program delays, labor strikes

By Esra Tekin

ISTANBUL (AA) - 12 Oct 2024 Sat 9:4 US-based aerospace giant Boeing plans to reduce its workforce by approximately 10% as the company grapples with program delays and ongoing labor strikes, CEO Kelly Ortberg announced in a message to employees.

“Our business is in a difficult position, and it is hard to overstate the challenges we face together,” Ortberg said, highlighting the impact of a protracted strike involving 33,000 hourly workers. He indicated that the company must make "tough decisions" and implement structural changes to maintain its competitive edge and fulfill long-term commitments to customers.

Ortberg’s statement did not specify the exact number of job cuts, but with Boeing employing 171,000 people worldwide at the start of the year -- 147,000 of them based in the US -- the planned reduction could affect thousands.

According to Ortberg, Boeing’s 777X program has been particularly impacted by development setbacks, a pause in flight testing, and the ongoing strike. These issues have delayed the projected timeline, with the first delivery now anticipated in 2026, a change that has already been communicated to customers.

Additionally, Boeing intends to complete its remaining 767 freighter orders and conclude the commercial production of the model by 2027. Meanwhile, production of the KC-46A tanker, a key military contract, will continue.

Ortberg acknowledged the difficult path ahead, emphasizing that while navigating current challenges, Boeing must take decisive action to rebuild and position itself for future success.