Boeing plans to cut 10% of workforce, further delay 777X, amid ongoing strike

Boeing's new CEO, Kelly Ortberg, has announced plans to cut 17,000 jobs, approximately 10% of its workforce, in a bid to restructure the company and reduce costs, according to the New York Times. The decision comes as Boeing grapples with ongoing production issues and a costly strike by its largest union rep.

The aerospace giant also revealed a further delay in the delivery of its 777X aircraft, now expected in 2026, a year later than previously anticipated. This delay affects several major airlines, including Emirates, Cathay Pacific, and Lufthansa, who had planned to introduce new cabin designs with these aircraft, as noted by One Mile at a Time.

Boeing's defense unit is facing significant challenges, with $2 billion in losses reported for the third quarter of 2024. The company cited issues with fixed-price contracts and program challenges as primary factors contributing to these losses.

The ongoing machinist strike, which began nearly a month ago, continues to impact Boeing's operations. Negotiations between the company and the International Association of Machinists and Aerospace Workers have stalled, with workers seeking a 40% wage increase.

These developments come as Boeing struggles to regain profitability, having not reported an annual profit since 2018. The company is also dealing with increased scrutiny following recent safety concerns, including the door panel incident on a 737 Max 9 in January 2024.