Boeing is laying off 17,000 workers as part of a broader effort to manage the company’s growing financial problems. CEO Kelly Ortberg delivered the news to employees in a memo, citing the need for “tough actions” to help the company recover. “Our business is in a difficult position, and it is hard to overstate the challenges we face together,” Ortberg said in the memo.
The decision comes on the heels of a strike by the International Association of Machinists and Aerospace Workers District 751. The union, representing nearly 33,000 workers, has been on strike for nearly a month after rejecting Boeing’s offer of a 25% wage increase over four years. The union is demanding a 40% wage hike, adding to the financial pressures Boeing is already facing.
Boeing has been losing nearly $1 billion a month due to the strike, and the company had implemented one-week furloughs for employees to reduce costs. Ortberg confirmed in his memo that these furloughs will now end with the upcoming layoffs. Boeing’s financial situation has been worsening for years, and this strike has only made matters worse.
Ortberg took over as CEO in August following congressional inquiries into Boeing’s role in two 737 Max crashes. Since then, the company has struggled to regain its footing. Boeing has lost $25 billion over the last five years, and in the third quarter of 2024, its stock price fell by nearly $10 per share.
The layoffs are expected to impact various departments within the company, and Boeing is likely to face continued challenges as it works to recover from its financial difficulties. The company’s long-term recovery plan remains uncertain as it navigates both internal and external pressures.
