Boeing Announces 17,000 Job Cuts Amid Union Strike and Production Slowdown

Boeing, the aerospace giant, has announced plans to lay off 10% of its global workforce, amounting to approximately 17,000 employees, as the company continues to grapple with production delays and a protracted labor strike. The decision was disclosed in a memo to staff on Friday by CEO Kelly Ortberg, who took over the company’s leadership in August. The cuts will impact all levels of the company, including executives, managers, and factory workers, and will unfold in the coming months.

The layoffs coincide with a strike led by Boeing’s machinists’ union, which has brought production at key facilities in Washington state and South Carolina to a near standstill. The company, which employs around 170,000 people globally, has seen a significant disruption in its ability to meet production deadlines, a problem worsened by the labor dispute.

Boeing’s financial outlook has also taken a hit. With production lines stalled and uncertainty about when operations will return to full capacity, the company’s stock dipped 1.1% in after-hours trading on Friday. Investors are wary of Boeing’s ability to maintain profitability, particularly as the global aerospace industry continues to recover from the challenges brought on by the pandemic.

The decision to reduce headcount marks a pivotal moment for the company, which had been slowly rebuilding after several tumultuous years, including issues with its 737 Max aircraft and the broader industry downturn. The strike and subsequent layoffs are seen as further obstacles in Boeing’s recovery efforts, with long-term impacts expected on both production and morale.

Boeing’s leadership hopes that restructuring will enable the company to weather the storm, but with production halts and a significant workforce reduction looming, the road ahead remains uncertain for one of the world’s largest manufacturers. The company’s next steps will be critical in determining its future stability and global competitiveness.