Shares of Boeing Co. fell about 3 percent in early trading sessions Monday after the plane maker said it plans to lay off about 10 percent of its global workforce in the coming months, about 17,000. people.
On Friday, Boeing’s new CEO Kelly Ortberg told staff in a memo that the job cuts will include executives, managers and employees.
“Our business is in a difficult position and it is difficult to overstate the challenges we face together,” Ortberg said in the memo. “Restoring our business requires difficult decisions and we will need to make structural changes to ensure we can remain competitive and deliver for our customers over the long term.”
As Boeing continues to lose money and tries to deal with a strike that is paralyzing production of the company’s best-selling planes, it also announced a new delay in the launch of a new plane, the 777X, to 2026 instead of 2025.
Around 33,000 unionized machinists have been on strike since September 14. Two days of talks this week failed to reach an agreement, and Boeing filed an unfair labor practices complaint against the International Association of Machinists and Aerospace Workers.
Boeing has made two offers of higher wages, both of which have been rejected by the union that represents hourly factory workers across the West Coast.
The airliner will also stop building the cargo version of its 767 aircraft in 2027 after finishing current orders.
Ortberg said the company has notified customers that first deliveries of the plane will not begin until 2026. He cited the ongoing work stoppage and pause in flight testing.
In other disappointing news, Boeing said it burned through $1.3 billion in cash during the third quarter and lost $9.97 per share.
It has lost more than $25 billion since the beginning of 2019.
Boeing also expects third-quarter results to include about $5 billion in combined pre-tax charges across its two main business divisions.
About $2.6 billion of that amount comes from another delay of Boeing’s 777X widebody jet.
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