Boeing's CEO, Kelly Ortberg, announced significant restructuring plans, including the layoff of 17,000 employees, which represents 10% of its global workforce. The decision stems from financial strains caused by a month-long strike and the need to align workforce numbers with current financial realities.
The strike involved around 30,000 workers from the U.S. West Coast, leading to a halt in production of the 737 MAX, 767, and 777 aircraft. As a result, Boeing must reassess its staffing and focus on more pressing priorities. The layoffs will affect executives, managers, and employees across various levels.
Additionally, Boeing has informed its clients about the new challenges faced in 777X development, compounded by paused flight tests and ongoing stoppages. Consequently, the first delivery of the 777X is now expected in 2026, a year later than previously planned.
