Boeing’s 10% Workforce Layoff and 777x Delay

Boeing’s Significant Job Cuts

Boeing has announced plans to lay off approximately 17,000 employees, representing 10% of its global workforce. This decision comes in the wake of a machinists’ strike in Seattle that has severely impacted the production of several key aircraft. The company’s chief executive, David Calhoun, stated that the layoffs will involve employees at all levels, including executives and managers, marking a critical adjustment to align the workforce with the company’s financial realities.

Impact of the Machinists’ Strike

The strike, initiated by members of the International Association of Machinists and Aerospace Workers, resulted from an overwhelming rejection of a contract offer. As roughly 33,000 workers left the job, production was halted for major aircraft models, including the Boeing 737 Max, 767, and 777. This disruption has compounded existing challenges for Boeing, anticipating significant revenue losses and negative operating cash flow for the third quarter.

Delayed Delivery of the 777x

In a related development, Boeing has communicated a delay in the first delivery of its highly anticipated 777x model. Initially expected in 2025, the timeline has now shifted to 2026. The delays are attributed to ongoing development challenges, the pause in flight testing, and the ramifications of the current strike. As Boeing prepares to report its third-quarter earnings on October 23, the focus remains on resolving labor disputes to restore production capabilities and meet customer expectations.