Boeing is not at its best. The American aerospace giant has announced that will cut 17% of its workforcewhich translates into 17,000 jobs, according to CNBC. In addition, it will make “difficult decisions” that include delaying delivery of its first 777X aircraft by one year and ending production of the commercial 767 Freighters program in 2027.
The news comes as Boeing is still trying to restore its reputation for quality and safety following fatal crashes in 2018 and 2019 involving 737 Max 8 aircraft, and the episode earlier this year in which a 737 Max 9 lost a door plug in mid-flight. But these are not your only problems at this time.
Boeing, an American giant in crisis
The historic Virginia-based manufacturer is facing a strike by more than 30,000 workers that affects the production lines of three of its aircraft. At the same time, a surprising preliminary report on the financial results for the third quarter suggests that losses will occur both in the commercial and defense aircraft areas.
“Our business is in a difficult position, and it is difficult to overstate the challenges we face together,” Boeing CEO Kelly Ortberg said Friday in an internal statement. In the text he added that the structural changes announced are aimed at making the company competitive again and meeting its customers.
The job cuts, which as we have seen number in the thousands, will reach positions executives, managers and employees. At the time of writing this article there are no more details about it. What we do know is that the announcement has had an effect on the company’s stock Price, whose shares fell 1.87% after hours.
Images | Sven Piper (Unsplash License)
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