Boeing will lay off 10% of its staff and delay the delivery of the first 777X
The aerospace giant warned in an email that employees at all levels of the company are at risk. This comes after a strike by factory workers paralyzes the production of the plane. Business United States of America
The aerospace giant warned in an email that employees at all levels of the company are at risk. This comes after a strike by factory workers paralyzes the production of the plane.
Boeing has approximately 170,000 employees worldwide Image: Richard Drew/AP/dpa/photo alliance
US aerospace company Boeing said on Friday it plans to cut 17,000 jobs, or 10% of its global workforce, as it anticipates a significant loss in the third quarter following a strike by Seattle machinists. Boeing workers affiliated with the International Association of Aerospace Machinists and Operators walked off the job on September 13 after rejecting a contract offer. The strike, which affected 33,000 workers, halted production of Boeing’s 737 MAX, 767 and 777.
The company must “reorganize its workforce to match its financial reality,” Chief Executive Officer David Calhoun said, adding that the job cuts “affect executives, managers and employees.”
In a separate statement, Boeing, which will report third-quarter results on October 23, said it now expects revenue of $17.8 billion (16.3 billion euros), with a loss per share of $9.97 and a negative cash flow of 1.3 billion dollars.
