Boeing Announces Job Cuts Amid Strike and Financial Losses
Boeing plans to cut 17,000 job which is 10% of its global workforce amid ongoing challenges. CEO Kelly Ortberg cited the month-long strike by 33,000 U.S. workers as a major factor. The strike has halted production of several aircraft models, including the 737 MAX and 777 jets. Boeing will also delay the first delivery of its 777X jet until 2026.
The company expects third-quarter losses of $5 billion and negative cash flow of $1.3 billion, signaling continued financial strain. Analysts suggest Boeing might need to raise $10-$15 billion to stabilize its credit rating, currently at risk of falling to junk status. Meanwhile, the strike has cost Boeing $1 billion per month, intensifying pressure to resolve labor disputes.
Boeing is also facing broader challenges, including safety concerns and legal troubles. It has agreed to pay over $940 million in fines and safety improvements following regulatory scrutiny. Despite these setbacks, Ortberg emphasized the company’s focus on long-term strategic decisions to restore stability.
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