The airplane manufacturer Boeing announced this week that it would cut 10% of its workforce in response to the ongoing strike from the company’s machinists, which has entered its fifth week.
The cut will include about 17,000 positions at the company, which has seen its aircraft factories sit empty as workers continue to call for a contract.
In a release on Friday, Boeing said it expects a loss of $9.97 a share in its third quarter. However, if the strike continues, the company’s losses could continue to grow.
A staff memo from Boeing CEO Kelly Ortberg on Friday also shared that the company won’t deliver its 777X wide-body plane until 2026, though the plane still isn’t certified by the FAA. Even still, the plane is now six years behind schedule.
“Our business is in a difficult position, and it is hard to overstate the challenges we face together,” Ortberg said. “Beyond navigating our current environment, restoring our company requires tough decisions, and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term.”
Ortberg took over as the company’s CEO just two months ago. After the strike began, he took action to try and reduce the impact that would be felt by furloughing thousands of positions and reducing executive salaries.
But now, the decision to cut jobs and costs is the most dramatic from the new executive.
If the strike continues, it could cost Boeing billions of dollars at a time when it is already suffering heavy losses and scrutiny from federal agencies over issues with its 737 MAX airplane.
So far, there has been no word on whether the union that represents the machinists and Boeing has gotten any closer to a contract.