Boeing has announced a significant restructuring plan that will see the aerospace giant cut approximately 17,000 jobs, representing about 10% of its global workforce. This decision, communicated by CEO Kelly Ortberg in a recent memo, comes as the company faces mounting challenges, including delays in its 777X aircraft program and ongoing labor disputes. The layoffs will affect various levels of employees, including executives and managers, and are part of a broader strategy to restore competitiveness amid financial difficulties.

The announcement follows a tumultuous period for Boeing, which has been grappling with production issues and regulatory scrutiny. The company is also dealing with the impact of a strike by 33,000 machinists that began last month, further complicating its operational landscape. The strike has led to the shutdown of several plants in the Seattle area, costing Boeing an estimated $100 million per day in lost revenue. These developments have prompted the company to make tough decisions to stabilize its financial standing.

In addition to job cuts, Boeing is delaying the introduction of its highly anticipated 777X jetliner. This delay adds to the growing list of challenges facing the company as it navigates a complex environment marked by labor disputes and production setbacks. Analysts suggest that these workforce reductions could save Boeing approximately $1.7 billion in earnings before interest and taxes, highlighting the financial urgency behind the layoffs.

As Boeing moves forward with these changes, the company is emphasizing its commitment to long-term recovery and competitiveness. Ortberg’s memo reflects a recognition of the difficult position the business is in and underscores the need for structural changes to ensure future success. While these layoffs will undoubtedly impact many employees and their families, they are part of Boeing’s efforts to emerge stronger from this challenging period in its storied history.