Boeing announced some important developments, including job cuts affecting 10% of its workforce, and another year of delays for the 777X.
It’s been a while since we’ve had some good news from Boeing – and the trend continues. The company will announce its third-quarter financial results on October 23rd. But its management has already indicated what it expects these results to look like and announced some related moves.
Perhaps the least surprising news involves the 777X. With FAA flight testing still on hold because of an engine mounting issue, plans to certify and deliver the first 777-9 in 2025 already looked questionable. Boeing now confirms that it will deliver the first 777-9 in 2026. Delivery of the first 777-8F freighter will follow in 2028.
Boeing also announced cuts of 10% of its global workforce, which amounts to 17,000 jobs. It is still unclear how these cuts will affect individual Boeing operations. The company group primarily consists of Boeing Commercial Airplanes, Boeing Defense and Space, and Boeing Global Services.
Boeing CEO Kelly Ortberg announced that the job cuts will affect “executives, managers and employees”. Of course, these developments come while the machinists’ strike overshadows Boeing and its financial position.
Boeing Fleet Plans Driving Some Employee Cuts
Before its announcements about cuts and fleet plans, Boeing was evaluating different fundraising options, so that it wouldn’t lose its investment-grade credit ratings. The strike reportedly costs Boeing $1 billion a month.
Elsewhere Boeing decided to end production of the 767 freighter in 2027, although the line will stay open to make KC-46A tankers. Boeing would have had to end 767F production in 2027 anyway due to new regulations on emissions. But in theory, the company could have pursued getting a waiver for the 767F specifically.
Ending the Boeing 767 freighter program will involve cuts in the workforce at the Everett factory – which include IAM 751 union members. The union reacted to the 767 news, stating that it will assess its impact on its membership.
Boeing has been in a loss-making position on multiple programs, well before the announcement of these cuts or the machinists’ strike. From their side, the union leadership accused Boeing of prolonging the strike by refusing to negotiate. Boeing also accused the union of not negotiating, making demands that go beyond the company’s financial means.
With negotiations stalled, we will have to wait to see what impact this latest news might have on this process. Boeing and the union are facing mounting external pressures to end their impasse.
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