Boeing announced Friday that it will cut 10% of its workforce, or about 17,000 jobs.
CEO Kelly Ortberg announced the job cuts in a memo Friday, writing that the aerospace giant must make “tough decisions” to remain competitive. Ortberg added that the company will also postpone its 777X development program and will halt 767 production after delivering the remaining 767s ordered by customers.
The layoffs and production changes come amid a labor dispute at Boeing, which employs 33,000 machinists. going on strike in September after failing to agree on a contract. The aerospace giant’s finances and reputation have been hit this year by manufacturing problems and multiple federal investigations after midair accidents. Panel atrium In January.
“Our business is in a difficult place, and the challenges we face together cannot be overstated,” Ortberg said in the memo. “Beyond navigating the current environment, rebuilding the company will require difficult decisions and structural changes that will enable us to remain competitive and serve our customers over the long term.”
Ortberg, a former head of aerospace company Rockwell Collins, joined Boeing Co. in August to replace outgoing CEO Dave Calhoun following increased regulatory scrutiny stemming from the company’s well-known production problems. He joined the company as CEO.
Ortberg said in a memo Friday that the layoffs will include executives, managers and employees and will take place “in the coming months.”
