In Shorts:
- Boeing to cut 17,000 jobs and delay 777X jet delivery by a year.
- CEO Kelly Ortberg says workforce must align with financial reality.
- Strike results in $5 billion loss; Boeing may raise $10 billion to maintain credit rating.
Boeing to Cut 17,000 Jobs, Delay 777X Jet Delivery Amid Financial Strain
Boeing has announced plans to cut 17,000 jobs and delay the first deliveries of its 777X jet by a year due to ongoing financial challenges and a month-long factory strike. The planemaker reported $5 billion in third-quarter losses, prompting CEO Kelly Ortberg to state that the company must shrink its workforce to align with “financial reality.”
The ongoing strike by 33,000 West Coast workers has halted production of Boeing’s 737 MAX, 767, and 777 jets, costing the company $1 billion per month. Resolving the strike is critical, as Boeing risks losing its prized investment-grade credit rating.
Boeing has already informed customers that the first delivery of the 777X is now expected in 2026 due to development challenges and the ongoing work stoppage. Additionally, Boeing will end its 767 freighter program in 2027 but will continue producing the KC-46A Tanker.
The company’s third-quarter earnings report highlighted significant financial strain, with expected revenue of $17.8 billion, a loss per share of $9.97, and negative cash flow of $1.3 billion. In light of these challenges, Boeing may raise between $10 billion and $15 billion to maintain its credit rating, which is now one notch above junk status.
