Boeing to lay off roughly 10% of its workforce

The CEO of a major aircraft manufacturer informed employees of plans to reduce 10% of the workforce in the coming months. The company has faced significant losses exceeding $33 billion over the past five years, alongside safety lapses and increased scrutiny. The CEO, who assumed the role two months ago, emphasized the necessity of structural changes to remain competitive.

Despite a global workforce of 171,000, with 147,000 in the United States, the exact number of job cuts was not specified. Recent challenges include a plane safety incident that prompted new investigations and problems involving its space division. The company's strategy involves concentrating resources to address underperformance.

The announcement coincides with ongoing financial difficulties, exacerbated by a strike halting commercial production, costing $1 billion monthly. Past labor disputes over pensions persist, with union members unsatisfied despite offered wage increases. The manufacturer is not at risk of disappearing due to an industry duopoly, as competing capacity to fulfill orders is limited.

Key programs are affected, including the discontinuation of a cargo aircraft in 2027 and delays to the widebody passenger plane project, now expected for delivery in 2026.