Boeing aims to lay off up to 10% of staff

The layoffs will apply to both ordinary employees and managers, including senior management.

One of the world’s largest manufacturers of aviation, space and military equipment, the American concern Boeing Co., announced plans to lay off up to 10% of employees and worsened its forecasts for financial performance in the third quarter , writes MarketWatch.

It is noted that the layoffs will apply to both ordinary workers and managers, including senior management, writes MarketWatch. The company’s staff is about 171 thousand people.

In the third quarter, it expects revenue of about $17.8 billion and a net loss of $9.97 per share, as well as negative operating cash flow of $1.3 billion.

Boeing is expected to release third-quarter financials on October 23.

In addition, the company postponed the start of deliveries of new 777-9 aircraft to 2026, and 777-8 cargoes to 2028, as a result of which it plans to record a one-time write-off of $2.6 billion.

According to Boeing CEO Kelly Ortberg, the business is in a difficult situation.

“Recovery will require difficult decisions and we need to make structural changes to remain competitive,” he said.

Remember that Boeing employees are on strike demanding higher wages. The strike led to the suspension of production of the 737, 777 and 767 aircraft models. The international rating agency S&P Global Ratings estimates the damage from the protest action for Boeing at more than $1 billion per month.

It was previously reported that Boeing airlines had agreed with the union to increase workers’ wages by 25% to avoid a general strike.

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