Faced with a lingering strike by workers and suffering through cash struggles, Boeing Co. plans to cut some 10 percent of its workforce, among other financial decisions.
In a memo to employees, CEO Kelly Ortberg said the reductions will affect executives, managers and employees. Boeing finished 2023 with some 171,000 employees.
“Our business is in a difficult position, and it is hard to overstate the challenges we face together,” Ortberg said in the memo.
The company expects to report third-quarter revenue of $17.8 billion, and a loss per share of $9.97, according to preliminary figures. The operating cash outflow stood at $1.3 billion, leaving Boeing with cash and investments in marketable securities of $10.5 billion at the end of the quarter, it said. The company is due to report full figures on Oct. 23.
The company unveiled the financial steps while trying to get negotiations with labor unions back on track. According to a report from Bloomberg, Boeing workers have turned down two offers. Some 33,000 employees at Boeing’s main Seattle-area facilities have been on strike for a month now.
The latest talks collapsed earlier this week; there’s no indication of when they might resume.
Boeing shares fell 1.5% as of 4:36 p.m. after regular trading Friday in New York. The stock tumbled 42% this year through the close, Bloomberg reported.
