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Boeing will cut 17,000 of their workforce which affect managers and employees and the company is downsizing to align with their “financial reality.”
There is an ongoing strike by 33,000 US workers which has stopped production of the Boeing 777, 767 and 737 jets.
As a result Boeing are now delaying the rollout of their new 777X until 2026 and the cargo version the 767 will see production stopped in 2027, Sky News reports.
Chief executive Kelly Ortberg said, “While our business is facing near-term challenges, we are making important strategic decisions for our future and have a clear view on the work we must do to restore our company.”
On Tuesday Boeing said they have withdrawn their pay offer and there is not further negotiations planned as the strike nears its fourth week.
Boeing Commercial Airplanes head Stephanie Pope told employees in a letter, “Unfortunately, the union did not seriously consider our proposals.”
Pope said the unions demands are “non-negotiable.”
She added, “Further negotiations do not make sense at this point and our offer has been withdrawn.”
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