By Allison Lampert and David Shepardson
(Reuters) – U.S. planemaker Boeing (BA) will cut 17,000 jobs, or 10% of its global workforce, delay the first delivery of its 777X aircraft by a year and expects significant new losses in its defense business as a company shut down for a month strikes has suffered finances, CEO Kelly Ortberg said Friday.
Ortberg said in a message to employees that the company must reset its workforce “to align with our financial realities” after a strike by about 30,000 workers on the U.S. West Coast halted production of its 737 MAX, 767 and 777 jets stopped.
“We have realigned our workforce to align with our financial realities and provide a more focused set of priorities. Over the coming months, we plan to reduce the size of our overall workforce by approximately 10 percent. These reductions will affect executives, managers and employees,” Ortberg’s message said.
Ortberg also said Boeing has informed customers that the company now expects first delivery of its 777X in 2026 due to the challenges Boeing has faced in development, as well as the pause in flight testing and the ongoing work stoppage.
(Reporting by Allison Lampert and David Shepardson; Editing by Rod Nickel)
