Boeing announced it will cut approximately 17,000 jobs, which is about 10% of its workforce.

The airplane manufacturer will also delay the launch of its 777X wide-body planes until 2026.

In addition to multiple federal probes, Boeing faces a factory strike.

Per CNBC:

The manufacturer will not deliver its still-uncertified 777X wide-body plane until 2026, putting it some six years behind schedule, and will stop making commercial 767 freighters in 2027 after it fulfills remaining orders, CEO Kelly Ortberg said in a staff memo Friday afternoon.

Boeing expects to report a loss of $9.97 a share in the third quarter, the company said in a surprise release Friday. It expects to report a pretax charge of $3 billion in the commercial airplane unit and $2 billion for its defense business.

In preliminary financial results, Boeing said it expects to have an operating cash outflow of $1.3 billion for the third quarter.

“Our business is in a difficult position, and it is hard to overstate the challenges we face together. Beyond navigating our current environment, restoring our company requires tough decisions and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term,” Ortberg said.

“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. 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,” he added.

WATCH:

From The Seattle Times:

After a year of slow production following a panel blow out in January, Boeing was already in a weakened financial position when more than 33,000 machinists walked off the job on Sept. 13.

As the strike nears its fourth week, there is no end in sight. Talks between the two parties broke down earlier this week, leading Boeing to withdraw its most recent offer.

“We know these decisions will cause difficulty for you, your families and our team, and I sincerely wish we could avoid taking them,” Ortberg wrote to employees Friday. “However, the state of our business and our future recovery require tough actions.”

Shortly after the strike began, Boeing began one-week furloughs throughout the company to preserve money as its factories sat quiet. Now, it will end the cycle of furloughs in November and reduce its workforce by 10% in the coming months, Boeing said Friday.

The layoffs will affect all functions across Boeing, from executives to managers to employees. The company will share detailed information with workers next week, Ortberg said, as Boeing resets its “workforce levels to align with our financial reality and to a more focused set of priorities.”

It’s not clear how the layoffs will affect the striking machinists.

Boeing currently has 170,000 employees companywide, including 66,000 in Washington.

 

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