Boeing to Cut 17,000 Workers Amid Ongoing Strike Negotiations
Boeing's Workforce Cuts
Boeing plans to cut 10 percent of its workforce, amounting to approximately 17,000 workers, according to CEO Kelly Ortberg's announcement. This drastic measure comes as the company grapples with a difficult business environment and ongoing strike negotiations that have significantly impacted its operations.
Delayed Deliveries and Production Changes
Additionally, deliveries of its 777X planes have been delayed until 2026, along with the discontinuation of 767 Freighters production in 2027. Ortberg stated, “Our business is in a difficult position, and it is hard to overstate the challenges we face together.”
Strike Impact and Union Negotiations
The major cuts emerge as Boeing faces an impasse in negotiations with the International Association of Machinists (IAM) union, amid a strike that began in mid-September, involving around 33,000 workers. The strike has already cost the company, employees, and suppliers approximately $1.4 billion.
Union's Reaction
Boeing returned to the bargaining table but withdrew its offer of a 30 percent wage increase and a $6,000 bonus, which was seen as a significant improvement over its initial proposal. The union claims its members are generally opposed to the latest offers.
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