Boeing to Delay 777X Plane and Cut Workforce Amid Strike and 737 Max Issues

Boeing has announced plans to reduce its workforce by 10% and delay the launch of its 777X plane as it grapples with ongoing challenges, including a strike and issues with the 737 Max aircraft.

Workforce Reduction and Challenges

CEO Kelly Ortberg stated that the decision to cut 10% of Boeing's 170,000 employees was necessary due to the company's current circumstances, which he described as a "difficult position." The company is still addressing quality-control problems on some of its aircraft models.

Financial Fallout and Discontinuation of Freight Model

Boeing's recent announcement also included plans to discontinue a freighter model and implement cost-cutting measures to mitigate the financial impact of the ongoing strike. Ortberg emphasized the importance of making tough decisions to restore the company's stability.

Recent Developments and Impact on 777X Program

Analysts had projected significant daily costs as a result of the strike, with 33,000 workers participating. The situation escalated as discussions between Boeing and the union broke down, leading to the company filing a complaint with the National Labor Relations Board.

One of the major setbacks for Boeing is the delayed timeline for the 777X program, with initial deliveries now anticipated in 2026. The 777X, Boeing's latest widebody aircraft, has encountered multiple delays and incurred substantial financial losses, raising concerns about the company's competitiveness in the market.

Despite having received orders from numerous global carriers, the prolonged delays and cost overruns associated with the 777X program may erode trust in Boeing within the industry. This situation could potentially prompt airlines to consider alternative options, such as the Airbus A350.

Boeing's challenges with the 777X program come amid existing issues related to the 737 and 787 aircraft models, further complicating the company's efforts to regain stability and competitive edge in the aviation sector.

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By: kvlamis@businessinsider.com (Kelsey Vlamis,Taylor Rains)
Title: Boeing to Delay 777X Plane and Cut Workforce Amid Strike and 737 Max Issues
Sourced From: www.businessinsider.com/boeing-layoffs-strike-777x-delay-freighter-2024-10
Published Date: Fri, 11 Oct 2024 23:02:26 +0000