A Boeing 737 MAX airliner is photographed Thursday, Sept. 12, 2024, at the company’s facility in Renton, Washington.
Stephen Brashear | Associated Press
boeing company As the company’s losses continue to increase, the company will lay off 10% of its employees, approximately 17,000 people. machinists strike Its aircraft factories have been idle for a fifth week.
Boeing unexpectedly announced on Friday that it expected a loss of $9.97 per share in the third quarter. It oversees its commercial aircraft division and defense business.
The manufacturer will not deliver the yet-to-be-certified 777X wide-body jet until 2026, six years later than originally planned, and will cease production of the commercial 767 in 2027, the CEO said. Kelly Ortberg said in a staff memo Friday afternoon.
“Our business is in a tough position, and the challenges we collectively face cannot be overstated,” Ortberg said. “In addition to adapting to the current environment, restoring our company will require making difficult decisions that we must make. Make structural changes to ensure we remain competitive and serve our customers in the long term.”
The layoffs and cost cuts are the most high-profile moves yet by Ortberg, who has been in the top job for just over two months.
He is tasked with restoring Boeing’s operations after the safety and manufacturing crises, but the strike is Ortberg’s biggest challenge yet. Credit ratings agencies have warned that the company is at risk of losing its investment grade, and Boeing has been burning through cash in what company leaders hope will be a turnaround year.
S&P Global Ratings said earlier this week that Boeing was losing more than $1 billion a month as a result of the strike, which began on Sept. 13 after machinists overwhelmingly walked out. rejected A tentative agreement between the company and the union. Boeing withdrew its contract offer earlier this week amid growing tensions between manufacturers and unions.
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