Due to financial problems, Boeing will reduce its workforce by eliminating 17,000 jobs

Boeing announced Friday that it will cut around 10% of its worldwide workforce, or the jobs of some 17,000 people, in the coming months, in addition to taking action on its aircraft portfolio, because of financial difficulties.

In two separate messages, the manufacturer announced that it will postpone deliveries of its 777X cargo, the end of production of the 767 cargo in 2027, and warned that its third-quarter results would be hit by large expenses, due in particular to the strike by more than 33,000 workers since mid-September.

Boeing is considering "bringing its workforce in line with its financial reality," said its president, Kelly Ortberg, noting that the cutback "will reach executives, managers and employees" in general.

The company announced a series of adjustment measures and production delays during more than a month-long strike, which added to a long series of problems for the company.

Last Tuesday, the aviation giant suspended negotiations with the International Association of Machinists and Aerospace Workers (IAM) and withdrew its settlement offer to the union which has been on strike since Sept. 13.

According to the company, the strike added $3 billion in pre-tax expenses to its third-quarter commercial aviation sector results, part of an already anticipated loss of $9.97 per share.

"These decisive actions, along with key structural changesin our business, are necessary to remain competitive over the long term," Ortberg added in a statement.

Boeing shares were down 1.7% in after-hours trading on Wall Street.

Unsuccessful negotiations

The 787 Dreamliner is the only one still being produced because the plant is located in South Carolina (east), and employees are not unionized.

Several months of negotiations, including under the auspices of federal mediation since mid-September, have not allowed the union and Boeing to agree on a new four-year social agreement.

"Our company is in a difficult situation," Ortberg noted in his message.

"Rebuilding the company requires tough decisions and we must make structural changes to ensure that we remain competitive and serve our customers for the long term," he said.

Ortberg further announced that the 777X long-haul jetliner program would be delayed once again.

According to a press release accompanying his message, the first delivery of the 777-9 should take place in 2026 (instead of 2025) and the 777-8 in 2028. Initially, the first aircraft in this range were scheduled to enter service in 2020.

The group also plans to deliver the 767 freighters ordered to date but will cease commercial production of these aircraft from 2027. It will, however, continue to produce versions of the KC-46A military tanker.