Aerospace giant Boeing announced plans this week to lay off approximately 17,000 employees, equating to 10% of its global workforce. The cuts, which are expected to take effect in mid-January, are part of a broader effort to reduce costs and streamline operations. The company has about 170,000 employees worldwide, many of them working in manufacturing facilities in South Carolina and Washington state.
“We will continue forward with our previously announced actions to reduce our workforce levels to align with our financial reality and a more focused and streamlined set of priorities,” CEO Kelly Ortberg wrote to staff. “These structural changes are important to our competitiveness and will help us deliver more value to our customers over the long term,” he added.
CEO Ortberg, who assumed the role in August, cited financial challenges and the need for structural changes to remain competitive. The layoffs will impact employees across all levels, including executives, managers, and workers in manufacturing facilities in South Carolina and Washington state.
What CEO Kelly Ortberg told employees on job cuts
Ortberg told employees in a memo last month that the job cuts would include executives, managers and employees. “Our business is in a difficult position, and it is hard to overstate the challenges we face together,” Ortberg told staff, saying that the situation “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.”
In addition to the layoffs, Boeing announced the end of 767 production in 2027 and a delay in the 777X rollout to 2026. The latter delay is attributed to the recent discovery of a defective part that grounded test flights earlier this year.
In addition to the layoffs, Boeing made several other strategic decisions:
767 Production End: The company will cease production of the 767 aircraft in 2027, following the completion of current orders.
777X Rollout Delay: The rollout of the new 777X has been pushed back to 2026 due to the discovery of a defective part and subsequent grounding of test flights.
The company has faced a tumultuous year, including a strike involving 33,000 workers in the Seattle area that halted production of several key aircraft models. The strike, which ended on November 5th, was prompted by workers’ rejection of a tentative contract agreement.
Boeing has been under significant financial pressure and has taken steps to shore up its finances, including a $24 billion fundraising effort. The company has also faced numerous safety and regulatory challenges, including the grounding of the 737 Max following two fatal crashes.