look news india
Job cuts: Aviation giant Boeing has planned to cut its workforce by ten percent, under which about 17,000 employees will be laid off. Boeing announced the job cuts on Friday. The company said the decision was taken after it suffered a huge loss in the third quarter in the wake of the strike in the Seattle area.
Boeing will also stop production of cargo planes
CEO Kelly Ortberg issued a statement to employees on Friday, in which he said Boeing will also end production of commercial 767 cargo planes in 2027 after completing existing orders. He said the company was facing mounting losses and a strike by machinists, which halted operations at aircraft factories for five weeks.
Chief Executive Kelly Ortberg said that aviation giant Boeing is going through a lot of financial crisis these days, to fix which the staff levels will have to be restored. He said 17,000 jobs would be cut globally, which would include executives, managers and employees.
The company said a nearly month-long strike by 33,000 workers had delayed aircraft production, adding to the company's problems. Boeing employees of the International Association of Machinists and Aerospace Workers walked off the job on September 13 after overwhelmingly rejecting a contract proposal.
The company is facing challenges – CEO
“While our business faces near-term challenges, we are making important strategic decisions about our future and doing the work we must to restore our company,” Ortberg said in a press release. These decisive steps, coupled with major structural changes to our business, are necessary to remain competitive in the long term.
Boeing shares fell 1.7 percent
As a result of the strike, Boeing said it was pushing first deliveries of the 777X from 2025 to 2026. The company plans to end production of the 767 freighter in 2027 after production on existing orders is completed. At the same time, Boeing shares fell 1.7 percent after the company announced the cut.