Boeing Co. said it plans to cut its workforce by about 10%, responding to the crisis facing the planemaker as it battles a prolonged worker strike and a worsening cash crunch. The reductions will include executives, managers and employees, CEO Kelly Ortberg said in a memo to employees. Boeing ended 2023 with 171,000 employees.
“Our business is in a difficult position and it is difficult to overstate the challenges we face together,” Ortberg said in the memo.
The company said it expects to report third-quarter revenue of $17.8 billion and a loss per share of $9.97, according to preliminary numbers. Operating cash outflow was $1.3 billion, leaving Boeing with cash and marketable securities investments of $10.5 billion at the end of the quarter, it said. The company is expected to report full numbers on October 23.
The company revealed the measurements and profit figures as it seeks to get its negotiations with unions back on track. Boeing made two offers of higher wages, both of which were rejected by workers. About 33,000 workers at its main Seattle-area facilities have been on strike for a month, devastating production and draining Boeing’s reserves.
The latest talks collapsed earlier this week, with no clear path forward on when and how they might resume.
READ MORE: With strike at Boeing, global plane shortage could worsen
Boeing has already begun a series of cost-cutting plans as it struggles with dwindling reserves and low production. The company furloughed some workers, froze hiring and cut corporate travel. Ortberg said the company would not proceed with the next furlough cycle as part of its plan to cut jobs.
Boeing shares are down 42% this year until the close.
Ortberg also said the company has notified customers that first deliveries of the 777X are now expected in 2026, citing the halt to ongoing work and the pause in flight testing. In August, Boeing announced it was suspending testing due to cracks in a key component that connects the plane’s engines to the wings.
It’s the latest setback for the jet, which has already suffered delays in certification by the Federal Aviation Administration.
The delay of the passenger version as well as the freighter — now scheduled for 2028 — will result in a pre-tax profit charge of $2.6 billion, Boeing said. Overall, the commercial aircraft subsidiary will have a pre-tax earnings charge of $3 billion in part from the expiring 767 programs.
The defense and space business will carry a pre-tax earnings charge of $2 billion, Boeing said.
