Boeing to cut 10% of workforce, delay first 777X delivery – DW

US aerospace company Boeing announced Friday that it plans to cut 17,000 jobs, or 10% of its global workforce, as it forecast a significant loss for the third quarter following a machinists' strike in the Seattle area.

Boeing workers affiliated with the International Association of Machinists and Aerospace Workers walked off the job Sept. 13 after rejecting a contract offer. The strike, involving 33,000 workers, halted production of Boeing's 737 MAX, 767 and 777 planes.

The company “needs to reset our workforce to align with our financial reality,” Chief Executive David Calhoun said, adding that the cuts “will include executives, managers and employees.”

In a separate release, Boeing, which reported third-quarter earnings on Oct. 23, said it now expects $17.8 billion (€16.3 billion), a loss per share of $9.97, and negative operating cash flow of $1.3 billion.

777X delivery delays

Calhoun also said Boeing has informed customers that the company now expects first deliveries of the 777X in 2026 instead of 2025. Delays have been caused by the challenges Boeing has faced in development, as well as flight test interruptions and ongoing strikes.

Boeing has already faced certification issues with the 777X that have significantly delayed the plane's launch.

Reaching an agreement to end the strike is critical for Boeing. Ratings agency S&P estimates the strike is costing the company $1 billion a month and putting it at risk of losing its prized investment-grade credit rating.

Even before the Sept. 13 strike began, the company was burning through cash as it struggled to recover from a mid-air panel blowout on a new plane in January that exposed lax safety protocols and prompted U.S. regulators to halt production.