Aircraft manufacturer in crisis Boeing cuts 17,000 jobs worldwide
There seems to be no improvement in sight at Boeing. The aviation giant announces that 17,000 jobs will be cut worldwide.
No time? blue News summarizes for you
- Boeing plans to cut some 17,000 jobs worldwide to cope with its financial difficulties.
- The strike by more than 33,000 workers has brought production of models such as the Boeing 737 Max to a standstill.
- In addition, Boeing is postponing delivery of the 777X until 2026 and will cease production of the 767 freighter in 2027.
In the midst of the strikes at Boeing, the struggling US aircraft manufacturer has announced that it will cut around ten percent of its global workforce in the coming months - or around 17,000 jobs. The reduction in the workforce is intended to help overcome the company's current financial problems, as Boeing announced on Friday. In particular, the current strike by more than 33,000 Boeing employees is causing the company's results to plummet in the third quarter.
Boeing CEO Kelly Ortberg explained that the company must "redefine our workforce numbers to bring them in line with our financial reality". The global job cuts will also affect the management level.
On Friday, Boeing also announced the postponement of the delivery of its new 777X wide-body aircraft from 2025 to the following year. Production of the 767 freighter will be discontinued in 2027.
Boeing 737 assembly halted due to strikes
The strike at Boeing in the Pacific Northwest region around the US metropolis of Seattle began in mid-September. Due to the work stoppages, the assembly of Boeing 737 Max and 777 aircraft came to a virtual standstill.
On Tuesday, Boeing suspended talks with the IAM union and withdrew its wage offer. The employees made "non-negotiable demands that go far beyond what can be accepted", the company explained.
The union had previously rejected a further improved offer from the company, which included a 30 percent wage increase, higher bonus payments and improvements to pension contributions. The IAM wants to fight for 40 percent more money for the workforce and the reintroduction of pension schemes.
However, Boeing is not only suffering financially because of the strike. Even before the industrial action, the aircraft manufacturer had numerous problems that also affected the safety of its aircraft.
