Boeing lays off 10% of workforce amid declining company value, ongoing strike and failing products

By avagrace // 2024-10-16

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Boeing has announced that it is laying off approximately 10 percent of its workforce. In a memo, Boeing CEO Kelly Ortberg announced the layoffs, writing that the aerospace giant must make "tough decisions" to stay competitive. The layoffs mean around 17,000 employees will no longer have a job at the company. Ortberg added that the company is also delaying its program to develop the 777X airplane and halting production of the 767 aircraft after it delivers the remaining 767 planes that have been ordered by customers. The aerospace giant's finances and reputation have also taken a hit this year due to manufacturing problems and multiple federal investigations, following a mid-air panel blowout in January. (Related: Boeing agrees to plead guilty to criminal fraud conspiracy charge relating to fatal 737 max crashes, would reportedly avoid public trial.) "Our business is in a difficult position, and it is hard to overstate the challenges we face together," said Ortberg in the memo. "Beyond navigating our current environment, restoring our company requires tough decisions and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term." Ortberg, the former head of aerospace company Rockwell Collins, joined Boeing as CEO in August, replacing outgoing CEO Dave Calhoun in the wake of increased regulatory scrutiny sparked by production problems at the storied company. The company said it expects to report third-quarter revenue of $17.8 billion, and a loss per share of $9.97, according to preliminary figures. The company unveiled the measures and the earnings figures as it seeks to get its negotiations with labor unions back on track.

Layoffs come amid ongoing strike of 33,000 Boeing machinists

The layoffs and production changes come amid a labor dispute at Boeing, with 33,000 machinists going on strike in September after failing to agree on a contract. Boeing has made two offers for higher wages, both of which were turned down by workers. The 33,000 employees work at Boeing's main facilities in the Seattle metropolitan area. Their strike, which has been ongoing for over a month now, has devastated production and drained Boeing's reserves. The latest talks have once again collapsed, with no clear path as to when and how work at Boeing's factories might resume. Ortberg also said the company has notified customers that the first deliveries of the 777X are now expected in 2026, citing the ongoing work stoppage and flight test pause. "While our business is facing near-term challenges, we are making important strategic decisions for our future and have a clear view on the work we must do to restore our company," said Ortberg. "These decisive actions, along with key structural changes to our business, are necessary to remain competitive over the long term. We are also focusing on areas that are critical to our future and will ensure we have the balance sheet necessary to invest, support our people and deliver for our customers." "We know these decisions will cause difficulty for you, your families and our team, and I sincerely wish we could avoid taking them," Ortberg wrote in the memo to employees, referring to the job cuts. "However, the state of our business and our future recovery require tough actions." Visit EconomicRiot.com to see the latest news regarding corporations and the economy. Watch this clip of former Boeing CEO Dave Calhoun admitting to retaliating against whistleblowers who exposed the company's shortcomings. This video is from the TrendingNews channel on Brighteon.com.

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Layoffs come amid ongoing strike of 33,000 Boeing machinists

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