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Boeing to lay off around 17,000 workers | Scoop
Boeing has announced that it is planning to cut about 10% of its workforce, totalling about 17,000 people. – Wikimedia Commons pic, October 12, 2024
News

Boeing to lay off around 17,000 workers

This comes amid strikes involving 33, 000 machinists, it will also delay 777X aircraft production and halt 767 production

Scoop Reporters
Updated
11:14 AM MYT

 

KUALA LUMPUR – Aircraft manufacturing giant Boeing announced today that it will be cutting about 10% of its workforce, or about 17,000 employees, according to a news report.

CBS News, quoting a memo released by the company’s chief executive officer Kelly Ortberg, reported that the company must make “tough decisions” to stay competitive. 

Ortberg also said in the memo that the company is also delaying its programme to develop the wide-body 777X aircraft and halting the production of the 767 aircraft after delivering the remaining 767 planes ordered by customers. 

“Our business is in a difficult position, and it is hard to overstate the challenges we face together.

“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,” the report quoted Ortberg as saying in the memo. 

Ortberg also said the terminations will include executives, managers, and other employees. It is said to take place within the coming months. 

The announcement came amid labour strikes at the company, involving 33,000 machinists following failure to agree on a contract presented by the former.  

CNBC reported that Boeing filed an unfair labour practice charge with the National Labor Relations Board yesterday, where it accused the International Association of Machinists and Aerospace Workers of negotiating in bad faith and misrepresenting the plane makers’ proposals. 

The union had criticised Boeing for an offer that it argued was not negotiated with the union and said workers would not vote on it. 

The aerospace company’s finance and reputation have taken a hit this year due to manufacturing problems and multiple federal investigations following a mid-air panel blowout involving an Alaska Airlines-operated Boeing 737 MAX 9 aircraft in January, among other cases. – October 12, 2024 

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