Boeing to Cut 17K Jobs as Worker Strike Continues
Boeing has announced plans to cut 17K jobs — 10% of its global workforce — as the company grapples with ongoing financial challenges and a machinist strike....
Facts
- Boeing has announced plans to cut 17K jobs — 10% of its global workforce — as the company grapples with ongoing financial challenges and a machinist strike.[1]
- The reductions will include executives, managers, and employees. Boeing employs around 170K people worldwide, with many working in manufacturing facilities in Washington and South Carolina.[2]
- Boeing's CEO, Kelly Ortberg, told staff in a Friday memo that the company needs to make 'structural changes' to ensure competitiveness and customer satisfaction 'over the long term.'[3]
- He also said that Boeing will roll out the 777X jet in 2026 — a year's delay — and stop manufacturing the cargo version of its 767 jet the year after.[4]
- Boeing, which has lost more than $25B since 2019, projected third-quarter revenue of $17.8B, GAAP loss per share of $9.97, and operating cash flow of $1.3B.[4][5]
- The International Association of Machinists' ongoing strike is reportedly costing the company $1B a month. Earlier this year, Boeing agreed to plead guilty and pay a $243.6M fine to avoid a criminal trial for alleged conspiracy to commit fraud.[2][5]
Sources: [1]Daily Caller, [2]Daily Mail, [3]New York Times, [4]Breitbart and [5]Reuters.
Narratives
- Narrative A, as provided by Guardian and MediaRoom. Boeing's drastic workforce reduction is necessary to address the company's financial and operational challenges. The ongoing strike and production issues have left the company with no choice but to make tough decisions to ensure long-term competitiveness and customer satisfaction. These structural changes will help Boeing navigate its current environment and restore its position in the aerospace industry.
- Narrative B, as provided by Forbes and Bloomberglaw. The job cuts are a short-sighted solution that fails to address the root causes of Boeing's problems. Instead of investing in its workforce and improving quality control, the company is prioritizing cost-cutting measures that may further compromise safety and production standards. This decision could lead to a loss of expertise and potentially exacerbate the issues that have plagued Boeing in recent years.
