The president of the aircraft manufacturing company Boeing, Kelly Ortbergannounced this Friday that due to financial difficulties They will reduce their workforce worldwide by around 10%, which translates into 17,000 layoffsin addition to adopting measures on its aircraft catalog.
In two separate messages, the manufacturer announced the postponement of deliveries of its cargo 777X, the end of production of the 767 cargo in 2027, and warned that its third quarter results would be affected by large expenses, due, in particular, to the strike of more than 33,000 workers since mid-September.
Olberg noted that the company plans “adapt your workforce to your financial reality” and that the cut “will reach executives, managers and employees” in general.
More than a month of strike was added to a long series of problems for the company, which caused Boeing will announce a series of adjustment measures and production delays.
On Tuesday the aviation giant suspended negotiations with the International Association of Machinists and Aerospace Workers (IAM) and withdrew its offer of an agreement to the union, which has been on strike since September 13.
The strike added 3 billion in pre-tax expenses to its commercial aviation sector results in the third quarter, part of an already anticipated loss of US$9.97 per share, as reported by the company.
“These decisive actions, along with key structural changes to our business, are necessary to remain competitive in the long term,” Ortberg expanded in a statement.
Boeing shares fell 1.7% in after-hours trading on Wall Street.
The only production that is still underway is that of the 787 Dreamline, since the plant is located in South Carolina (this), and the employees are not unionized.
Kelly Ortberg: “Our company is in a difficult situation”
After several months of negotiations, Boeing has not yet managed to agree on a new four-year social contract with the union, even under the auspices of federal mediation since mid-September. “Our company is in a difficult situation,” Ortberg remarked in his statement.
“Rebuilding the business requires difficult decisions and we must make structural changes to ensure we remain competitive and serve our customers for the long term,” he added.
In turn, noted that the 777X long-haul aircraft program would be delayed once again.
Boeing delivery delays
The press release that accompanied his message indicated that the first delivery of the 777-9 should take place in 2026 (instead of 2025) and that of the 777-8 in 2028. Initially, it was planned that the first aircraft in this range They will enter service in 2020.
In addition, the company plans to deliver the 767 freighters ordered to date, but commercial production of these aircraft will cease from 2027. However, it will continue to produce versions of the military tanker plane KC-46A.
Source: Ambito
