Getty ImagesBoeing is to cut its workforce by a tenth – cutting 17,000 jobs – and slow production as the planemaker grapples with problems across its business.
CEO Kelly Ortberg said in an email to employees that “officers, managers and employees” are all at risk.
The business also warned of the loss of its weapons and military equipment manufacturing arm, and postponed the delivery date of its 777X jet.
The news comes as the business faces striking workers and growing concerns about the quality of its flights.
Mr Ortberg said in an email that the company would reduce its price “in the coming months”.
“Next week, your leadership team will share detailed information about what this means for your organization,” he said, adding that the next round of layoffs will not continue.
“The state of our business and our future sustainability requires drastic measures,” Mr Ortberg said.
Along with the job cuts, the company is also delaying production of its 777X due to “challenges we have faced in development, as well as the suspension of flight tests and ongoing work stoppages”, possibly referring to the ongoing strike that has taken place. continues for several weeks.
“We have informed the customers that we are now expecting the first delivery in 2026,” he said.
A month-long union strike at Boeing has grown more contentious, with nearly 33,000 workers demanding better pay.
Talks appeared to be breaking down this week, with union leader John Holden telling Reuters, “We’ve been at this for a long time and our members understand that.”
Global credit rating agency S&P has put Boeing on CreditWatch, a sign it may downgrade the planemaker’s rating if the strike drags on.
The company was already under scrutiny from Congress after an incident in January, when a malfunction caused a panel to explode on a Boeing 737-MAX plane shortly after takeoff.
No one was injured, and former Boeing CEO Dave Calhoun said the company “acknowledges our mistake”.
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