
Boeing has announced plans to lay off 17,000 employees as part of a strategy to address mounting financial losses. In a memo to employees, CEO Kelly Ortberg explained that the company is facing serious challenges and that the layoffs are a necessary step to ensure future recovery. “Our business is in a difficult position, and it is hard to overstate the challenges we face together,” Ortberg said.
The layoffs come shortly after nearly 33,000 workers, represented by the International Association of Machinists and Aerospace Workers District 751, went on strike. The union rejected Boeing’s offer of a 25% wage increase over the next four years, demanding instead a 40% wage hike. The strike, which has been ongoing for almost a month, is reportedly costing Boeing close to $1 billion per month.
Boeing had initially responded to the strike by implementing one-week furloughs for employees, but Ortberg indicated in his memo that the furloughs will now end as layoffs take effect. The company is working to mitigate the financial impact of both the strike and long-term financial losses.
Since taking over as CEO in August, Ortberg has been tasked with guiding Boeing through a turbulent period. The company has lost $25 billion over the past five years, and its stock price took another hit in the third quarter of 2024, dropping by nearly $10 per share. Boeing’s ongoing financial troubles have made these layoffs unavoidable.
The layoffs will affect a significant portion of Boeing’s workforce, with the company hoping to stabilize its financial situation in the months ahead. The impact of the strike, financial losses, and past controversies, however, leave the future of Boeing’s recovery uncertain.