Aircraft manufacturing giant Boeing will reportedly cut 10% of its workforce amid an ongoing factory strike and escalating losses.
According to CNBC, Boeing’s CEO Kelly Ortberg delivered a message to the company’s employees on Friday, announcing that nearly 17,000 jobs would be cut.
The news came after the production of some of its jets was halted as 30,000 of its US West Coast workers have been on strike for several weeks.
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In his memo, Ortberg reportedly said that the cuts would impact “executives, managers, and employees.”
He also mentioned that the company will delay the delivery of its 777X to 2026 due to ongoing production and development challenges.
On Thursday, Boeing released its preliminary third-quarter results.
“The company expects to report third-quarter revenue of $17.8 billion, GAAP loss per share of ($9.97), and operating cash flow of ($1.3) billion,” reads the statement.
Ortberg commented on the report, acknowledging that Boeing is facing “near-term challenges.”
He added that the company is making “important strategic decisions for [its] future.”
“These decisive actions, along with key structural changes to our business, are necessary to remain competitive over the long term,” he stated.
Daily Hive has reached out to Boeing for further comment.