Boeing is facing significant challenges amid an ongoing strike and financial setbacks, leading to plans to lay off about 17,000 employees, roughly 10% of its workforce. The company, which has suffered over $25 billion in losses since 2019, is struggling to stabilize operations. The layoffs will impact various levels, including executives, managers, and other employees, with many working in Boeing’s major manufacturing hubs in Washington and South Carolina.
The strike, which began on September 14 with around 33,000 union machinists, has heavily impacted production. Efforts to negotiate a resolution recently failed, and Boeing has filed an unfair-labor-practices complaint against the International Association of Machinists and Aerospace Workers. The halt in production has affected Boeing’s cash flow, as the company typically receives significant payments upon delivering completed aircraft.
In addition to the layoffs, Boeing has announced further delays for its 777X plane, pushing its rollout to 2026, and plans to cease production of the cargo version of the 767 by 2027 once current orders are fulfilled. Recent financial disclosures revealed large write-downs: $2.6 billion related to 777X delays, $400 million concerning the 767, and $2 billion associated with defense projects like the Air Force One jets and NASA’s space capsule.
CEO Kelly Ortberg, who took charge in August, has called for structural changes to maintain the company’s competitiveness and long-term stability. However, Boeing still faces various challenges, including heightened regulatory scrutiny and concerns about aircraft safety, particularly after issues with the 737 Max and NASA’s rejection of a Boeing spacecraft for astronaut transport.
The full third-quarter financial results are expected to be released on October 23, but preliminary reports show Boeing burned through $1.3 billion in cash and posted significant losses, driven in part by the ongoing strike and delayed projects.
