Boeing Announces 17,000 Involuntary Layoffs as Strike Costs $5B and 777X Jet Delayed to 2025

Oct 14, 2024, 01:37 PM

Boeing is planning to cut approximately 17,000 jobs, amounting to 10% of its global workforce, as it grapples with ongoing financial losses exacerbated by a protracted labor strike involving over 33,000 workers. The layoffs, which will be involuntary, are set to commence with 60-day notices being issued in mid-November, affecting staff across various departments, including significant cuts among white-collar employees. The strike, now entering its second month, has cost the company and workers an estimated $5 billion, and Boeing has reported a $2 billion loss in its defense unit over the last three months. In addition to the layoffs, Boeing has announced further delays to the development of its 777X jet, now pushed to late 2025, drawing criticism from key customers such as Emirates Airline. Emirates CEO Tim Clark has expressed serious concerns over the repeated postponements, even raising the specter of Boeing seeking bankruptcy protection. Boeing's stock price has fallen to a 52-week low, dropping as much as 3.3%. Acting U.S. Labor Secretary Julie Su is set to visit Seattle to facilitate negotiations aimed at resolving the strike.