The job cuts will include executives and managers in addition to ordinary employees, according to a memo shared by the company’s new president and CEO Kelly Ortberg on Friday. The corporation employs nearly 170,000 people worldwide, RT reported.
“Our business is in a difficult position, and it is hard to overstate the challenges we face together,” said Ortberg, who became CEO of the troubled aircraft maker two months ago. A month after he took the helm, 33,000 hourly workers went on strike.
“We reset our workforce levels to align with our financial reality and to a more focused set of priorities,” he added.
The “tough” decision is aimed at completing structural changes that will ensure the company’s ability to stay competitive and execute the customers’ orders over the long term, the CEO emphasized.
Ortberg added that Boeing is also delaying its program to develop the 777X airplane until 2026 and halting production of its commercial 767 freighters in 2027 after fulfilling remaining orders.
Earlier this week, Boeing said it had filed an unfair labor practice charge with the National Labor Relations Board against the union that represents its striking West Coast factory workers. The company emphasized that the International Association of Machinists and Aerospace Workers had failed to bargain in good faith during the four-week work stoppage, adding that it was “issuing misinformation to its members about the status of negotiations.”
MA/PR