Boeing Co (NYSE:BA, ETR:BCO) is set to cut a tenth of its workforce as the issues at the planemaker continue to pile up, including costs of strikes by thousands of staff.
Some 17,000 jobs are set to be axed under the move, which was unveiled by chief executive Kelly Ortberg on Friday.
Delays to Boeing’s 777X aircraft project were also unveiled, while the manufacturer warned of substantial losses in its weapons and military equipment arm.
“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.”
This comes as Boeing grapples to revive its reputation after a string of issues with aircraft have led to scrutiny over the company’s quality control practices and hit production.
A mid-flight door panel blow-out on an Alaska Air-operated Boeing 737 MAX in January had initially prompted a backlash, while strikes by thousands of workers in the Seattle area have added to problems most recently.
According to Anderson Economic Group, the 33,000 worker-strong strike has dealt a US$3.7 billion (£2.8 billion) hit since beginning in mid-September.
This has caused production at Everett, Washington to come to a standstill, hitting suppliers by a further US$900 million.
Ortberg added executive, managerial and employee roles were all at risk under the layoff plans, with details of the cuts set to be shared this week.