Boeing announces significant reduction in workforce and delays development of 777X aircraft

Boeing, a leading aircraft manufacturer, has announced a significant reduction in its workforce by approximately 10%, equating to around 17,000 jobs including executive roles. This move is part of the company’s structural changes aimed at enhancing its competitiveness in the market and meeting the long-term needs of its customers.

The announcement came in a message from Boeing’s CEO, Kelly Orber, explaining that this job cut is part of the company’s strategy to adapt to the current challenges it faces. The step comes amidst a major strike by assembly workers, numbering around 33,000, leading to production halts at Boeing’s key factories, including those manufacturing the “737 Max” aircraft, one of the company’s best-selling planes.

Reports suggest that this strike, which started in mid-September, has significantly impacted Boeing’s revenues as the company relies on receiving half the aircraft’s value upon delivery to customers. 

Moreover, Boeing has announced a delay in the development of its new “777X” aircraft, pushing the timeline to 2026 instead of the previously set date in 2025, citing development challenges and the ongoing strikes’ impact as reasons.

Since the beginning of 2024, Boeing has faced a series of crises, including an incident where the cover door of a “737 Max 9” aircraft separated during flight, a plane that had been in service with Alaska Airlines for less than a year. Though the incident did not result in injuries, it added further pressure on the company.

Boeing also faced legal challenges after admitting guilt to conspiring to defraud the U.S. government in July 2024. This followed two crashes involving “737 Max” planes in 2018 and 2019, resulting in 346 fatalities, damaging the company’s reputation and causing significant financial losses.

In terms of space programs, Boeing suffered significant losses due to delays in the return of its space vehicle, “Starliner,” from the International Space Station. The spacecraft encountered technical issues leading to mission delays for months, forcing astronauts to return in SpaceX’s Dragon capsule next February.