Boeing continued on its downward spiral Friday, as it announced that it was cutting 10 percent of its workforce, or 17,000 jobs, as the storied aircraft manufacturer continues to deal with a fractured bottom line and labor woes and the machinists at the company remain on strike after more than a month. The company announced the job losses as it reported its dismal third-quarter report that anticipates a loss of $9.97 per share even though it absorbed $17.8 billion in revenue.
Boeing has decided to suspend production of its 777X plane until 2026, Chief Executive Officer Kelly Ortberg told employees in a Friday memo. Ortberg replaced Dave Calhoun as CEO but the job cuts are business as usual for Boeing. Ortberg has promised to mend fences between the company and its workers, the Washington Post reported.
“Our business is in a difficult position, and it is hard to overstate the challenges we face together,” Ortberg said in an understated memo. “The state of our business and our future recovery require tough actions.”
With its corporate headquarters near Washington, DC, Boeing has been a leader in civil and military aviation for decades and has a roster of 170,000 employees in the US and another 65 other countries. The strike between the company and the union, representing 33,000 machinists, are at an impasse as the labor strike begins its fifth week. Both sides are blaming the other for failure to compromise.
Boeing Starliner spacecraft was unable to fly back to Earth from the International Space Station, stranding two astronauts. NASA is relying on Elon Musk’s SpaceX program to shuttle them home.
Boeing has also been struck with mechanical failures, like the recent tire explosion at the Atlanta airport. Two Boeing whistleblowers have also died of mysterious causes.