“Boeing announces significant job cuts, shares fall”

Source: Davit Kirakosyan

The Boeing Company (NYSE:BA) is preparing for a substantial workforce reduction, planning to cut about 17,000 jobs—around 10% of its global staff. The layoffs will impact positions across various roles, from executives and managers to operational staff. As part of its restructuring efforts, Boeing will also postpone the initial deliveries of its 777X aircraft by a year and take a $5 billion loss for the third quarter, as noted in a recent earnings preview. As a result, shares are down more than 2% intra-day today.
CEO Kelly Ortberg informed employees about the challenging structural changes required to stabilize Boeing’s broader performance and secure long-term competitiveness. Ortberg emphasized the need for clear goals and realistic timelines, urging a focused investment in core areas critical to Boeing’s identity. He noted that prioritizing resources on strategic projects would strengthen the company, rather than diluting efforts across multiple fronts that could hinder growth and innovation.
In addition to internal challenges, Boeing is also dealing with an ongoing worker strike in the Pacific Northwest, which has incurred significant costs and threatens to downgrade its bond rating to junk status. Financial analysts project that Boeing will need an additional $10 billion in financing to support its operations during this period.

Read more