Boeing Announces Layoffs, 777X Delay
Company says it has a plan to dig out of current difficulties
Boeing announced 17,000 layoffs, a one-year delay in the 777X program and the end of production for the civilian freighter version of the venerable 767 on Friday as it grapples with reduced revenues from a lingering strike and a seemingly endless stream of production and quality issues. “We reset our workforce levels to align with our financial reality and to a more focused set of priorities," CEO Kelly Ortberg said in a message to employees. "Over the coming months, we are planning to reduce the size of our total workforce by roughly 10 percent. These reductions will include executives, managers and employees.”
The news came as Boeing prepares for a grim third-quarter earnings report due on Oct. 23. In a separate release, it said it's expecting a loss per share of $9.97 and a negative cash flow of $1.3 billion. “While our business is facing near-term challenges, we are making important strategic decisions for our future and have a clear view on the work we must do to restore our company,” Ortberg said.
Among those steps was calling airlines all over the world to tell them its flagship 777X will not start deliveries until at least 2026, much of it tied to the strike but also because of a pause in flight testing because of issues with engine mounts. The last 767F will come off the line in 2027 when the current backlog of 29 planes are delivered, but the company will keep making KC-46s, the military tanker derivative.
