Loss of US$5 bn in 3Q! Boeing announces 17,000 layoffs

A month-long strike has caused Boeing to spiral out of control. In addition to delaying the first deliveries of its 777X jet by a year and recording US$5 billion in losses in the third quarter, the US planemaker will lay off 17,000 employees, or 10% of its total workforce worldwide.

In a note to staff, CEO Kelly Ortberg stated that the substantial layoffs are required "to align with our financial reality" following the suspension of construction of the company's 737 MAX, 767, and 777 aircraft due to a strike involving 33,000 US West Coast workers.

Boeing, which reports third-quarter earnings on Oct. 23, said in a separate release that it now expects revenue of US$17.8 billion, a loss per share of US$9.97, and a better-than-expected negative operating cash flow of US$1.3 billion.

Ortberg also said Boeing has notified customers that it now expects the first delivery of its 777X in 2026 due to challenges in development, the flight-test pause and the work stoppage. Boeing had already faced issues with the certification of the 777X that had significantly delayed the plane's launch.

Ratings agency S&P estimated the strike is costing Boeing US$1 billion a month and the company risks losing its prized investment-grade credit rating.

Related News:

S&P places Boeing's rating on CreditWatch negative as 33,000 workers on strike

Boeing workers reject offer of 25% pay increase, go on strike