Boeing to lay off 10% of workforce

EVERETT, Wash. — Boeing announced Friday it will cut 10% of its workforce and end the 767 freighter program as it grapples with financial challenges and an ongoing machinists strike.

The job cuts will include executives, managers and employees, according to an email sent by CEO Kelly Ortberg. The layoffs are expected to take place “in the coming months,” and the leadership team is expected to share more specific information next week.

Boeing previously furloughed employees on a rotating basis during the machinists strike. However, in light of the layoffs, it said it wouldn’t continue with the next cycle of furloughs.

“We need to be clear-eyed about the work we face and realistic about the time it will take to achieve key milestones on the path to recovery,” Ortberg said. “We also need to focus our resources on performing and innovating in the areas that are core to who we are, rather than spreading ourselves across too many efforts that can often result in underperformance and underinvestment.”

In addition to layoffs, Boeing said it planned to build and deliver the remaining 767 freighters that have been ordered and then end the commercial program in 2027. It will continue to produce the KC-46A tanker.

The company will also evaluate its Boeing Defense, Space & Security program, which is one of the world’s largest defense and space contractors.

“We expect substantial new losses in BDS this quarter, driven by the work stoppage on commercial derivatives, continued program challenges and our decision to complete production on the 767 freighter,” Ortberg wrote.

Boeing said the first delivery in its 777X program was further delayed to 2026 after the work stoppage and test flight pause.

The shakeup comes the strike involving 33,000 Boeing machinists wraps up its fourth week. Contract talks have stalled with the machinists’ union, IAM District 751, rejecting Boeing’s “best and final” offer. Machinists have demanded a 40% pay raise and to have their pensions reinstated.

The strike has put Boeing in a challenging financial situation. An estimate released Tuesday from S&P Global shows the strike could cost Boeing more than $1 billion a month. S&P also put the company on CreditWatch with the possibility of downgrading its credit rating by the end of the year.

This is a developing story. Check back for updates.