Boeing is cutting 17,000 jobs as part of its response to severe financial losses, according to a memo from CEO Kelly Ortberg. The decision comes as the company faces growing financial challenges, including a month-long strike by union workers. “Our business is in a difficult position, and it is hard to overstate the challenges we face together,” Ortberg wrote in the memo.
The layoffs follow a strike by the International Association of Machinists and Aerospace Workers District 751, which represents nearly 33,000 Boeing employees. The union rejected Boeing’s proposal for a 25% wage increase over four years, demanding a 40% increase instead. The strike is costing Boeing close to $1 billion per month, further complicating the company’s efforts to recover financially.
To mitigate these losses, Boeing had previously implemented one-week furloughs for employees, but Ortberg confirmed that the furloughs will end with the layoffs. Boeing’s financial problems are significant, with the company losing $25 billion over the past five years. In the third quarter of 2024, Boeing’s stock price fell by nearly $10 per share.
Ortberg became CEO in August following congressional scrutiny and legal issues related to Boeing’s involvement in two 737 Max crashes. His leadership has focused on steering the company through these difficult times, but Boeing’s financial future remains uncertain.
The job cuts are expected to affect thousands of workers across the company, as Boeing looks to stabilize its operations. With ongoing labor disputes and financial losses, the road to recovery may be long for the aerospace giant.
