Aircraft giant Boeing The company said on Friday that it will cut 10% of its workforce and reduce production in the coming months amid major financial difficulties and an ongoing strike.
Boeing suffered a series of major aircraft failures, including The door of the Alaskan Airlines plane exploded in January, suffered huge losses In the third quarter of 2024.
“Our business is in dire straits, and it’s hard to overstate the challenges we face together,” said Boeing CEO Kelly Ortberg. CNN. “Restoring our company requires difficult decisions and we will need to make structural changes to ensure we remain competitive.”
Ortberg took over as CEO in August Dave Calhoun The company, which is under intense regulatory pressure, did not specify the exact number of layoffs that would take place, but said employees at all levels of the business could expect details next week.
More than 33,000 Boeing employees participated in the vote allow a vacation last month. About 20% of Boeing’s workforce suddenly took to the picket line. Their union, International Association of Machinists and Aerospace Workers, cited stagnant wages, safety concerns and unfair labor practices as reasons for the shutdown.
Talks between Boeing and the IAM reportedly broke down earlier this week, and Boeing is among them withdrew his latest offer to unity. A news release cited the work stoppage as a factor in production delays and suspensions of several Boeing aircraft.
Union representatives for other Boeing workers were disappointed by news of the layoffs and the company’s blaming of striking workers rather than management mistakes.
“Rather than resolve the IAM strike and use the company’s resources to restore the confidence of regulators and customers, Boeing management decided to hurt all aspects of the company,” said Ray Goforth, director of the Society of Aerospace Professional Engineering Employees. Seattle Times.
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