Boeing to cut 10% of workforce, halt most 767 production amid labor union strike
Third Bridge global head of analysts Peter McNally discusses how the Boeing factory workers strike is impacting business on 'The Big Money Show.'
Boeing will lay off 10% of its workforce, approximately 17,000 employees, in the coming months and cut its production amid an ongoing labor union strike.
CEO Kelly Ortberg, who took on the role of chief executive in August, told staff in a memo Friday that the job cuts would include executives, managers and employees.
«Our business is in a difficult position, and it is hard to overstate the challenges we face together,» Ortberg told staff, saying that the situation «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 company has about 170,000 employees worldwide, many of them working in manufacturing facilities in South Carolina and Washington state.
Boeing shares fell 1.1% in after-market trading.
CEO OF BOEING CLOSES ON $4.1M SEATTLE HOME AMID FACTORY WORKERS' STRIKE: 'THEY CAN PAY US, TOO'
The fuselage and one of the engines of a Boeing 777-9 jetliner on the tarmac. (Giuseppe Cacace/AFP via Getty Images / Getty Images)
The company also announced the end of production of its 767 aircraft in 2027, after they completed the current orders for 29 jets.
BOEING WORKERS VOTE TO STRIKE AFTER CONTRACT NEGOTIATIONS REJECTED BY MEMBERS
They also delayed the rollout of its new 777X to 2026, instead of 2025. The delay comes following the recent discovery of a defective part that grounded test flights earlier this year.
Boeing workers in Seattle overwhelmingly voted to strike on Sept. 12, rejecting a contract the embattled aviation giant characterized as a boon for staff given
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