Boeing

Boeing’s Got More Cuts Than a Barber – 17,000 Jobs to Go!

Boeing is slashing 10% of its workforce amidst a strike and production delays; who knew airplanes could cause such turbulence?

Boeing, the renowned American aerospace giant, is taking drastic measures to cope with ongoing challenges, including significant strikes and production delays. In a shocking announcement, the company plans to lay off approximately 17,000 employees, representing a staggering 10% of its global workforce. This comes on the heels of a lengthy strike by aircraft machinists in the Puget Sound region. The company initially employed temporary furloughs, but as the situation escalated, it became clear that more permanent measures were necessary.

CEO Kelly Ortberg conveyed the tough news to employees, indicating that these layoffs are part of a broader restructuring aimed at positioning Boeing for future recovery. The company also announced plans to delay the delivery of its highly anticipated 777X jet. Originally expected to enter service sooner, the jet's delivery has now been pushed back by a year due to the rolling impacts of production complications and ongoing labor disputes. It’s a move that has left many industry insiders buzzing about how Boeing can rebound in the face of such adversity.

In an effort to cut costs further, Boeing is also halting most production of its 767 jets. These decisions have become necessary as the company wrestles with significant financial losses, around $5 billion this quarter alone. The aerospace manufacturer has been grappling with quality control issues that have plagued several model lines, making it crucial for Boeing to streamline operations and refocus its strategy to climb back toward profitability.

While Boeing is planning to part ways with thousands of its employees, it’s important to keep in mind the company's storied history. With over 100 years in the aerospace industry, Boeing has weathered numerous storms before. From producing military planes during WWI to leading the commercial aviation market today, Boeing's resilience is undeniable. Did you know that in 2018, Boeing made an impressive $101 billion in revenue? That’s more than double what they forecasted to earn during this tumultuous period. Only time will tell if these layoffs will translate into a more robust and sustainable Boeing in the skies ahead!