Why Boeing Is Cutting 17,000 Jobs, Delaying New Plane | Explained

Boeing on Friday said it will cut 17,000 jobs, or 10% of its global workforce, and delay the first delivery of its 777X jet by a year. This comes as the airplane maker announced new losses in its defense business amid a month-long strikes, CEO Kelly Ortberg added.The company expects to report a loss of an $9.97 a share in the third quarter, it revealed in a press release.

The plane manufacturer further said that it won’t deliver the still-uncertified 777X wide-body plane until 2026. This update puts the aircraft six years behind the original schedule. Boeing added that it will stop making commercial 767s in 2027.

“Our business is in a difficult position, and it is hard to overstate the challenges we face together,” Ortberg said in a memo. “Beyond navigating our current environment, restoring our company requires tough decisions and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term.”

Boeing shares fell 2.3% in after-market trading. The company will report its final third-quarter earnings on October 23. It is expecting a revenue of $17.8 billion and negative operating cash flow of $1.3 billion. “While our business is facing near-term challenges, we are making important strategic decisions for our future and have a clear view on the work we must do to restore our company,” CEO Ortberg added in a statement.