American aircraft manufacturer Boeing to lay off 17,000 employeeswhich represents 10% of its global workforce, will delay the first delivery of its 777X aircraft by a year and has announced significant losses in its defense division, according to the CEO Kelly Ortberg this Friday.
In a message to employees, Ortberg explained that the company must adjust its workforce “to align with our financial reality” after a strike of 33,000 workers on the west coast of the United States, which paralyzed production of its 737 MAX, 767 and 777 models.
“We have adjusted our staffing levels to align with our financial reality and a more focused set of priorities. In the coming months, we plan to reduce our total workforce by approximately 10%. These reductions will concern executives, managers and employees,” Ortberg detailed in his message.
THE Boeing shares fell 2.3% in operation after the market closes.
Ortberg also said Boeing had informed its customers that it was now plans first delivery of its 777X by 2026due to the challenges it faced in its development, as well as the pause in flight testing and the cessation of production. The company had previously encountered problems with the certification of the 777X, which significantly delayed the launch of the aircraft.
Boeing, which is scheduled to report third-quarter results on Oct. 23, said in a separate statement that it now expects revenue of $17.8 billion, or $17. 8 billion dollars. loss per share of $9.97 and negative operating cash flow of $1.3 billion.
“Despite the near-term challenges our company faces, we are making important strategic decisions for our future and have a clear vision of the work we must do to restore our company,” Ortberg added in his statement.
Boeing also announced that will end its 767 cargo plane program in 2027once it completes and delivers the remaining 29 aircraft on order, although production of the KC-46A Tanker will continue.
Reaching an agreement to end the strike is crucial for Boeing. Ratings agency S&P estimates the strike is costing the company $1 billion a month, jeopardizing its coveted investment-grade credit rating.
Even before the September 13 strike began, Boeing was already facing financial problems, following a January incident in which a fuselage panel of a new plane came off mid-flight, revealing flaws in safety protocols and forcing US regulators to halt its production. .
