Boeing layoffs 17,000 Jobs Amid Strikes and Production Delays
What is the reason for Boeing layoffs?
Boeing is taking drastic steps to address the financial impact of a month-long strike and ongoing production challenges. The aerospace giant has announced plans to cut 17,000 jobs—representing 10% of its global workforce—and will delay the first delivery of its highly anticipated 777X jet by a year, now expected in 2026.
What triggered the job cuts and production delays?
CEO Kelly Ortberg shared the news in a message to employees on Friday, emphasizing the need for Boeing to “align our workforce with our financial reality” following a strike by 33,000 U.S. West Coast workers. The strike has disrupted production of Boeing’s 737 MAX, 767, and 777 jets.
“We are adjusting our workforce to match our financial circumstances and focusing on key priorities,” Ortberg said. “This includes reducing the total workforce by about 10%, affecting executives, managers, and employees.”
The impact was felt on Wall Street as Boeing shares dropped 2.3% in after-market trading.
What’s happening with the 777X?
Beyond the workforce cuts, Boeing has faced significant setbacks in the development of its 777X aircraft. The company has informed customers that, along with the strike and a flight-test pause, certification challenges have further delayed the jet’s debut. Originally set for earlier, the first delivery is now planned for 2026.
In a separate statement, Boeing provided a glimpse of its financial outlook ahead of its third-quarter earnings report on October 23. The company expects revenue to come in at $17.8 billion, with a loss per share of $9.97 and a negative cash flow of $1.3 billion.
“Although we are navigating short-term hurdles, we’re making key strategic decisions to position Boeing for the future,” Ortberg added.
How critical is resolving the strike for Boeing?
The ongoing strike is proving costly for Boeing, with ratings agency S&P estimating the work stoppage is costing the company $1 billion a month. The strike also puts Boeing at risk of losing its prized investment-grade credit rating.
Facing Job Loss Due to Boeing Layoffs? Here’s What You Need to Know
If you’re a non-unionized Boeing employee in Canada impacted by the recent job cuts as part of Boeing’s global workforce reduction, you may be entitled to a full severance package. Severance compensation varies depending on factors like your length of service, age, and position, and in some cases, can amount to as much as 24 months of pay. Additionally, if mass layoffs involve 50 or more employees in Ontario, you may qualify for enhanced severance under provincial regulations.
At Whitten & Lublin, our experienced employment lawyers are here to guide you through this challenging time. We’ll help you understand your legal rights and work to ensure you receive the severance and compensation you deserve. If you’ve been affected by Boeing’s recent layoffs, contact us for a consultation online or by calling (416) 640-2667.