Boeing to Lay Off 17,000 Employees to Stay Competitive
In a move to ensure its long-term competitiveness, Boeing has announced that it will be reducing its workforce by 10%, resulting in the layoff of approximately 17,000 employees, including executives and managers. The decision comes as the company faces various challenges, including a machinist strike that has shut down production in most of its plants, including the ones manufacturing its best-selling 737 Max plane.
The layoffs are part of the company’s efforts to “make structural changes” and deliver for its customers over the long term. Additionally, Boeing has announced a delay in the development of its 777X planes, with the new wide-body planes now expected to be delivered in 2026 instead of 2025. This decision is due to the challenges the company has faced in the development process, as well as the ongoing work stoppage caused by the machinist strike.
The company’s troubles extend beyond the current labor issues. Earlier this year, Boeing had to ground some 737 Max 9 planes after an Alaska Airlines door plug blew off during a flight. In July, the company also agreed to plead guilty to a conspiracy to defraud the U.S. government following two fatal crashes in 2018 and 2019 that killed 346 people. Additionally, the company has faced setbacks with its Starliner spacecraft, which experienced hardware issues that delayed its return from the International Space Station.
