Boeing to cut workforce by 10%
October 12, 2024
Boeing has announced plans to cut 10% of its global workforce as it faces financial pressures and production delays.
The announcement from President and CEO Kelly Ortberg comes during a turbulent time for the company, which is grappling with strained relations with its staff and an ongoing strike that has hampered operations.
The job cuts, which will affect employees at all levels, including executives and managers, are part of a broader restructuring aimed at ensuring the company’s long-term competitiveness, Ortberg said.
In a letter to employees, Boeing’s CEO acknowledged the “tough decisions” needed to restore the company, emphasising the need to focus on core areas and streamline resources.
The 777X programme, already delayed due to development challenges and a flight test pause, has now been pushed to 2026.
Boeing also confirmed that production of the 767 Freighter will conclude in 2027, though work on the KC-46A Tanker will continue.
The company’s defence division, Boeing Defense, Space & Security (BDS), is also struggling, with further losses expected due to the ongoing strike and other project delays.
In light of these challenges, Boeing said it was “resetting” its workforce to better align with its “financial reality”, avoiding future furloughs by opting for a 10% reduction in staff.
The cuts have heightened tensions with Boeing’s workforce, which has been striking over pay and working conditions. The strike, combined with operational setbacks, has led to significant disruptions in production, and unions are likely to push back against the job cuts.
