American aircraft manufacturer Boeing will cut 17,000 jobs, which represents a 10 percent reduction in its global workforce. Boeing is also delaying the first delivery of the 777X plane by a year and expects a heavy loss in the third quarter due to the ongoing strike, CEO Kelly Ortberg said today. Reuters and AP inform.
New CEO Ortberg said in an internal memo to employees, according to the AP, that the company must adjust its workforce “to match our financial reality” after a strike by about 33,000 workers on the US West Coast crippled production of the company’s best-selling planes.
The company has already instituted a temporary furlough, but Ortberg said it will be suspended due to the upcoming layoffs. In a memo to employees today, Ortberg said the layoffs will affect executives, managers and employees.
Boeing halted negotiations with unions on Wednesday and withdrew a proposal to raise wages. A strike by about 33,000 workers at the company on the West Coast of the United States, which began on September 13, halted production of Boeing’s 777, 767 and best-selling 737 MAX aircraft. The MAX aircraft is an important source of revenue for the company at a time when it is struggling with low margins in the defense division.
Boeing proposed in September that it would give workers a 30 percent pay increase over the next four years. He called this proposal his “best and final” offer. However, the employees are demanding a 40 percent increase.
The last time Boeing made similar large-scale layoffs was in April 2020, when it was dealing with the consequences of the covid-19 pandemic. The company then dismissed about 16,000 employees.
Source: www.tyden.cz
