Boeing announces 17,000 job cuts and production delays

Boeing, one of the world’s largest aircraft manufacturers, announced on Friday, October 11, a 10% reduction in its global workforce, or around 17,000 positions. This decision will affect all categories of personnel – management, executives and employees – according to Kelly Ortberg, Boeing’s CEO for the past two months. In a message addressed to the group’s 170,000 employees, Ortberg explained that these measures were necessary to cope with the company’s growing financial difficulties.

Major industrial impact

This wave of job cuts is not the only challenge facing Boeing. A historic strike, involving over 33,000 workers since mid-September, has paralyzed the group’s two main plants: Renton, where the flagship 737 model is manufactured, and Everett, which specializes in the production of the 777 and 767 models, as well as several military programs. According to Standard & Poor’s, the strike is costing Boeing $1 billion a month.

Negotiations at a standstill

Despite several months of discussions, including the intervention of a federal mediator, Boeing and the union were unable to conclude a new four-year labor agreement. Faced with this impasse, Kelly Ortberg announced further delays to the 777X long-haul jet program. The first delivery of the 777-9 model, originally scheduled for 2025, has now been postponed to 2026, while that of the 777-8 has been shifted to 2028. These aircraft should have entered service in 2020.

At the same time, Boeing will continue to deliver the 767 freighters ordered to date, but will cease commercial production in 2027. However, production of military versions, notably the KC-46A tanker, will continue. Faced with financial difficulties, Boeing plans to reduce its worldwide workforce by 10%.