Laying off 10% of Workforce and Pausing 767 Production

Boeing has confirmed plans to lay off 10% of its workforce and cut production in the midst of a now month-long worker strike. The mega manufacturer has taken a significant financial hit in this ongoing event.

“Our business is in a difficult position, and it is hard to overstate the challenges we face together,” commented new Boeing CEO Kelly Ortberg. “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.”

The workforce cut will leave around 17,000 of Boeing’s 170,000 employees without a job. This could affect executive leadership, management, machinists, and other front-line employees.

Boeing will be completing the 29 standing orders for its 767 freighter before ending production in 2027. The delivery of its 777X long-range, wide-body aircraft will also be delayed… again. Customers like Lufthansa and Emirates will now be waiting until 2026 for their machines.

Flight tests for the 777X were put on hold in August when workers found structural damage in one of its 777-9 variants. With the latest development, the jetliner is now six years behind its original schedule. 

Experts have determined that Boeing is losing over $1 billion per month for the strike, which involves approximately 33,000 machinists. It began on September 13 after workers voted to throw out Boeing’s negotiated agreement with the union.

There is no clear end in sight as tensions between Boeing and the International Association of Machinists and Aerospace Workers (IAMAW) continue to grow. The manufacturer also recently pulled back its newer contract offer, which promised 30% raises over four years, after claiming that IAMAW was negotiating unfairly. This led to Boeing filing an unfair labor practice charge against the organization.

“Unfortunately, the union did not seriously consider our proposals. Instead, the union made non-negotiable demands far in excess of what can be accepted if we are to remain competitive as a business,” Boeing accused in a statement. “Given that position, further negotiations do not make sense at this point and our offer has been withdrawn.”

FMI: www.boeing.com, www.goiam.org