Aircraft giant Boeing will cut 10% of its workforce and slash production in upcoming months amid major financial troubles and an ongoing strike, the company said Friday.
Boeing, which faced a string of major aircraft failures including a door blowout on an Alaskan Airlines flight in January, posted major losses in the third quarter of 2024.
“Our business is in a difficult position, and it is hard to overstate the challenges we face together,” Boeing CEO Kelly Ortberg said in a Friday memo to staff obtained by CNN. “Restoring our company requires tough decisions and we will have to make structural changes to ensure we can stay competitive."
Ortberg, who took his post in August after CEO Dave Calhoun left amid intense regulatory pressure, did not identify the exact number of layoffs that would occur but noted that workers at all levels of the business could expect details next week.
More than 33,000 Boeing workers overwhelmingly voted to authorize a strike last month. Nearly 20% of Boeing’s workforce was suddenly on the picket line. Their union, the International Association of Machinists and Aerospace Workers, cited stagnant wages, safety issues and unfair labor practices as the reason for the work stoppage.
Talks between Boeing and the IAM reportedly broke down earlier this week, and Boeing withdrew its most recent offer to the union. The work stoppage was cited in a news release as a factor in layoffs, delaying and ending the production of several Boeing aircraft.
Reps from other Boeing employee unions were disappointed with the layoff news, and the company’s pinning of the blame on striking workers, not managerial missteps.
“Rather than resolve the IAM strike and focus the company’s resources on rebuilding the trust of regulators and customers, Boeing leadership has decided to harm every aspect of the company,” Society of Professional Engineering Employees in Aerospace director Ray Goforth said in a statement to the Seattle Times.
