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Boeing to cut 17,000 jobs as losses deepen during factory strike

Boeing will cut 10% of its workforce, or about 17,000 people, as the company's losses mount and a machinist strike that has idled its aircraft factories enters its fifth week. It will also push back the long-delayed launch of its new wide-body airplane.

The manufacturer will not deliver its still-uncertified 777X wide-body plane until 2026, putting it some six years behind schedule. The company in August paused flight tests of the aircraft when it discovered structural damage in one of them. It will stop making commercial 767 freighters in 2027 after it fulfills remaining orders, CEO Kelly Ortberg said in a staff memo Friday afternoon.

"Our business is in a difficult position, and it is hard to overstate the challenges we face together," Ortberg said. "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."

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

The job and cost cuts are the most dramatic moves to date from Ortberg, who is just over two months into his tenure in the top job, tasked with returning Boeing to stability after safety and manufacturing crises, including a near-catastrophic midair door-plug blow out earlier this year.