Boeing is planning to cut 17,000 jobs as the aviation major remains rattle due to mounting losses even as significant section of its workforce in the United States continues to strike. Boeing CEO Kelly Ortberg has sent an e-mail to company saying that the company must axe jobs “to align with our financial reality”, reported Reuters. Boeing is expected to record massive losses of USD 1 billion in the third quarter. About 33,000 workers are currently on strike.
The stoppage of work has forced the company to delay deliveries of 777X jet by a year. The strike has also stopped production of 737 MAX, 777 and 767 jets.
The company has been negotiating with workers’ unions but a deal has not yet been reached. On Wednesday Boeing even filed an unfair-labor-practice charge against the machinists union accusing it of not bargaining in good faith.
Ratings agency S&P has estimated that the strike is causing loss of USD 1 billion a month. The company faces losing its investment-grade credit rating.
Boeing and its troubles
Once a gold-standard in making planes, Boeing has significantly struggled in recent years with multiple fatal crashes of its planes owned by several carriers across the world. As recently as January 2024, a panel from its new plane fell-off mid-flight in the US. Although a quick action by the pilots and the crew ensured that there was no casualty. It brough Boeing in the crosshairs of aviation regulators in the US and elsewhere.
Boeing was again in news over past few months after its space capsule Starliner developed glitches while ferrying NASA astronauts to International Space Station (ISS). After months of trying to fix the issue, NASA decided it was too risky to bring back the astronauts aboard Boeing’s space capsule. The Starliner returned to Earth without the astronauts and they are now stranded in the space.
