Crisis at Boeing: the aircraft manufacturer cuts 17,000 jobs and delays the delivery of its 777X by a year

Boeing announced on Friday a reduction in the coming months of around 10% of its global workforce, which should affect around 17,000 jobs. The reduction in personnel will affect all categories, management, management, employees, said Kelly Ortberg, boss of Boeing for two months, in a message addressed to the group’s 170,000 employees.

The strike by members of the IAM machinists’ union in the Seattle region (northwest) has, among other things, completely shut down the group’s two main factories: that of Renton which produces the 737, its best-selling aircraft , and that of Everett, which manufactures the 777, the 767 as well as several military programs. Ratings agency Standard and Poor’s estimated Tuesday that the strike was costing Boeing $1 billion a month.

A series of measures affecting the aircraft catalog

Kelly Ortberg added that details would be provided next week by line managers, indicating that the partial furlough measures in place since September 20 to preserve the group’s cash flow during the strike were suspended. The latter, which also concerned all categories of personnel, except the strikers, and affected, in rotation, several tens of thousands of people, were part of a larger savings program, during the walkout.

The aircraft manufacturer also announced on Friday a series of measures affecting its catalog of aircraft, in an attempt to overcome its financial difficulties. In two separate messages, the latter indicated a further postponement of deliveries of its new wide-body 777X and the cessation of production of the 767 freighter in 2027. According to a press release accompanying his message, the first delivery of the 777-9 should take place in 2026 (instead of 2025) and that of the 777-8 in 2028. They were initially scheduled to enter service in 2020. The group will, however, continue with versions for the KC-46A military refueling aircraft.

Third quarter results weighed down

The group also warned that its third quarter results, which are scheduled to be published on October 23, will be reduced by several billion dollars in expenses due, in particular, to the strike of more than 33,000 workers since mid-September. Several months of negotiations, including with federal mediation, did not allow the union and Boeing to agree on a new four-year social agreement. Production of the 787 Dreamliner is the only one still in operation, because employees at the factory, located in South Carolina (east), are not unionized. Boeing shares ended the session up 3% on the New York Stock Exchange.

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