Boeing cutting 17,000 jobs, 10% of workforce – Washington Examiner
Boeing is set to lay off 17,000 employees as the company faces increasing financial losses. CEO Kelly Ortberg communicated this decision to employees in a recent memo, highlighting the significant challenges the business is currently experiencing. The company is navigating a tough financial landscape, making it necessary to reduce its workforce. Boeing’s decision to lay off 17,000 employees is a significant move in response to ongoing financial challenges the company is facing. CEO Kelly Ortberg’s communication underscores the difficulties Boeing is encountering, which may stem from various factors such as production delays, reduced demand, or broader economic pressures impacting the aerospace industry.
The reduction in workforce is often seen as a measure to stabilize financial performance and streamline operations, but it also reflects the tough realities many companies in the sector are grappling with. This decision can have far-reaching implications, not only for the affected employees and their families but also for the company’s operational capacity and overall market position.
As Boeing navigates this challenging environment, it will need to focus on strategic adjustments and potentially seek ways to enhance efficiency and innovation to regain stability and competitiveness in the industry.
Boeing cutting 17,000 jobs as financial losses deepen
Boeing CEO Kelly Ortberg announced to employees in a memo released on Friday that the company is laying off 17,000 people.
“Our business is in a difficult position, and it is hard to overstate the challenges we face together,” Ortberg said in the memo. “The state of our business and our future recovery require tough actions.”
The decision comes nearly a month after workers with the International Association of Machinists and Aerospace Workers District 751 went on strike. The union, which represents nearly 33,000 workers, rejected Boeings offer of giving workers a 25% wage increase over the next four years. Instead, the union is calling for a 40% wage increase.
Boeing said the strike is costing the company nearly a billion dollars a month and led the company to start one-week furlough for employees. However, Ortberg said in the memo that the cycle of furloughs will end.
Ortberg became Boeing’s CEO in August following the aftermath of congressional inquiries and the company pleading guilty for its role in two 737 Max jet crashes.
In the past five years, the company has lost $25 billion, and in the third quarter its shares dropped by $9.97.
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