Boeing Announces Major Layoffs Amid Ongoing Strikes and Production Delays
Boeing, the American aircraft manufacturing giant, has officially announced a significant reduction in its workforce, planning to lay off approximately 17,000 employees, which constitutes a 10% cut from its total workforce. This decision comes in response to ongoing quality issues and strikes that have severely impacted the company's operations. CEO Kelly Orthberg conveyed this decision in an email to employees, stating that all levels of the company, including directors and executives, could be affected.
The announcement coincides with a massive strike involving over 33,000 workers, marking one of the largest labor disputes in Boeing's history. Workers are demanding better pay and conditions, which has strained relations between the company and its employees. Union negotiator John Holden emphasized their readiness to maintain the strike for an extended period if their demands are not met.
In addition to the layoffs, Boeing is also delaying the delivery of its much-anticipated 777X aircraft until 2026 due to ongoing development challenges and the strike's impact on production workflows. The company had to suspend flight tests and communicate these delays to its customers, highlighting the significant operational challenges it currently faces.
As Boeing grapples with these crises, it has come under scrutiny from the US Congress due to past safety incidents, including a defect in the Boeing 737 Max that raised concerns about manufacturing quality. With financial pressures mounting and credit ratings under review by agencies like Standard & Poor’s, Boeing's future remains uncertain as it navigates these turbulent times.
