Recently, Boeing announced that it would be laying off 10 percent of its workforce, roughly 17,000 people. This is mainly because of the tug-of-war between Boeing and its financial situation, which includes mounting losses and supply chain disruptions as its machinist strikes continue through the fifth week.
The company reported its third-quarter earnings, revealing that despite generating approximately $17.8 billion in revenue, it expects a loss of around $9.97 per share. Moreover, Boeing has pushed back the launch of its 777X aircraft to 2026, according to a memo sent to employees on Friday by Kelly Ortberg, the newly appointed CEO. Ortberg, who recently succeeded Dave Calhoun as CEO, faces growing challenges, with the delay adding to the strain at an already difficult time for the company. Upon assuming leadership in August, Ortberg committed to mending the strained relationship between Boeing and its workforce.
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Kelly Ortberg said, “Our business is in a difficult position, and it is hard to overstate the challenges we face together. The state of our business and our future recovery require tough actions.”
With corporate offices in the US and a foothold in various countries, Boeing has more than 170,000 employees in the US and more than 65 countries. The Boeing machinists’ strike has now extended into its fifth week following the collapse of negotiations between the company and the union representing 33,000 workers. Both parties have accused each other of refusing to reach a compromise.
