Boeing, one of the world’s leading aircraft manufacturers, has announced plans to lay off 10 percent of its workforce. This decision will lead to approximately 17,000 employees losing their jobs and will result in delays in the company’s production schedule.
The company is currently grappling with multiple business challenges. In an email to employees, Boeing’s Chief Executive Officer, Kelly Ortberg, explained that the job cuts will affect executives, managers, and employees alike.
Ortberg emphasized that this significant downsizing is essential to “align with our financial reality.” The decision comes after an extended strike involving 33,000 workers on the U.S. West Coast halted production of Boeing’s 737 MAX, 767, and 777 aircraft models.
The company’s difficulties extend beyond labor issues. Boeing has also warned of potential financial losses in its defense and military equipment manufacturing sector. Additionally, the delivery timelines for its highly anticipated 777X aircraft have been pushed back, further compounding its operational challenges.
In his message, Ortberg also acknowledged that Boeing is facing quality control issues with its aircraft, exacerbating the company’s troubles. He informed employees that further layoffs are expected in the coming months as the company continues to adjust to the evolving situation.
