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The aircraft manufacturer Boeing announces massive job cuts. In view of the financial reality and ongoing strikes, the company is forced to take this step.
Arlington – The ailing Boeing Group is cutting around ten percent of its jobs. Boeing boss Kelly Ortberg did not give an exact number of jobs when making the announcement – but according to the latest information from the turn of the year, the aircraft manufacturer had a total of around 170,000 employees. The company must adapt the workforce to financial reality, explained Ortberg. Management and employees, among others, are said to be affected by the global cuts.
Boeing’s largest union, IAM, which represents around 33,000 workers, has been on strike since mid-September. © Lindsey Wasson/dpa
Boeing’s largest union, IAM, which represents around 33,000 workers, has been on strike since mid-September. The work stoppage affects Boeing production around Seattle in the northwest of the USA, where, among other things, the best-selling 737 model and the long-haul 777 jet are built. The strike is currently further exacerbating Boeing’s problems.
Five billion dollars in write-offs at Boeing
After the US stock market closed on Friday, the group also announced a write-down requirement of five billion dollars (around 4.57 billion euros). The commercial aircraft division is responsible for three billion dollars, the rest goes to defense, space and security.
In the commercial aircraft sector, Boeing’s customers now have to wait even longer for the next-generation 777X machines they have ordered. For the freight version, it should take until 2028. The company now does not expect the first delivery until 2026. Ortberg referred to the strike and currently suspended test flights. They were stopped after problems occurred with the test machines. Production of the cargo variant of the 767 is scheduled to end in 2027.
Boeing’s quarterly sales below analyst forecasts
Boeing also announced preliminary key data for the third quarter. Sales are likely to be $17.8 billion, which is almost a billion less than experts previously expected. The loss per share is said to be just under $10. Boeing will present the detailed quarterly figures on October 23rd.
Boeing recently offered the striking workers an income increase of 30 percent over the four-year term of the contract. After the union refused to accept this, Boeing withdrew the offer. Boeing workers had accepted several zero rounds over the past decade. The union last went on strike in 2008. The strike lasted 57 days and cost the company around $2 billion, according to analyst estimates.
