Boeing lays off seventeen thousand workers – ČT24 – Czech Television

American aircraft maker Boeing will cut 17,000 jobs, representing a 10 percent reduction in its global workforce. The company is also delaying the first delivery of 777X planes by a year and is expecting a significant loss in the third quarter due to the ongoing strike, CEO Kelly Ortberg said Friday.

New CEO Ortberg said in an internal memo to employees, according to the AP, that the company needs to adjust its headcount “to match our financial reality.”

A strike by around 33,000 workers on the west coast of the United States of America has canceled production of the Boeing 777, 767 and the best-selling 737 MAX aircraft. The MAX aircraft is an important source of revenue for the company at a time when it is struggling with low margins in the defense sector.

The company has already set up temporary furloughs, but Ortberg said it would be canceled due to the upcoming layoffs. In a memo to employees Friday, Ortberg said the layoffs would affect officers, managers and employees.

Boeing suspended negotiations with the unions on Wednesday. The company proposed in September that they would raise wages by 30 percent over the next four years. She called this proposal her “best and last” offer. However, the workers want a 40 percent increase.

The last time Boeing made layoffs on a large scale was in April 2020, when it was dealing with the consequences of the covid-19 pandemic. At that time, the company laid off about 16,000 workers.