Amidst the ongoing Boeing factory strike, the company is facing financial challenges and plans to lay off approximately 10 percent of its workforce, which equates to about 17,000 employees. This decision comes as Boeing continues to struggle financially and grapple with the impact of the ongoing strike.
The new CEO, Kelly Ortberg, announced in a memo to employees that the job cuts will affect executives, managers, and other staff members. Boeing, which currently employs around 170,000 people globally, has manufacturing facilities primarily in Washington and South Carolina.
Due to the impending layoffs, Boeing will suspend its temporary furloughs and make significant changes to its production plans. The rollout of the new plane, the 777X, will be delayed to 2026, and the company will cease building the cargo version of its 767 jet in 2027 after fulfilling existing orders.
Financial Struggles
Boeing has reported staggering financial losses of over $25 billion since the beginning of 2019. The company has been further impacted by a strike that began on September 14, involving approximately 33,000 union machinists.
As Boeing navigates these challenges, new CEO Ortberg faces the daunting task of steering the company towards stability and success.
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Vocabulary List:
- Impending /ɪmˈpɛndɪŋ/ (adjective): About to happen; imminent.
- Layoff /ˈleɪˌɔf/ (noun): A discharge of an employee or a group of employees.
- Struggling /ˈstrʌɡlɪŋ/ (verb): Engaging in a fight or contest; having difficulty.
- Staggering /ˈstæɡərɪŋ/ (adjective): Very shocking or surprising; astonishing.
- Machinists /məˈʃiːnɪsts/ (noun): Workers skilled in operating machines or equipment.
- Production /prəˈdʌkʃən/ (noun): The process of making or manufacturing goods.
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