Boeing to trim 10% of staff as strike persists and output falls

Boeing said it will cut about 10 percent of its workforce in the next few months as it grapples with the spillover of a work stoppage by factory workers that has disrupted its production. The cuts will be across all ranks-from top executives to frontline employees.

In a memo to staff on Friday, Kelly Ortberg, the new CEO, outlined the job cuts and said that the company would suspend previously implemented temporary furloughs owing to the impending layoffs. Boeing has remained among the biggest losers since the start of 2019, having lost more than $25 billion.

In its annual report, the company said it will delay the launch of its new 777X aircraft to 2026 instead of launching it in 2025. The airplane manufacturer also said it plans to stop its production on the cargo variant of the 767 jet by 2027, after fulfilling orders for what it has.

The best-selling airline planes of Boeing have fallen victim to the strike by union machinists that began last Tuesday. Twice during last week, the Boeing unions negotiated for two days without an agreement on terms; the company was uncertain once again.