Boeing Co (NYSE:BA, ETR:BCO) has started issuing layoff notices this week as part of a larger workforce reduction, impacting around 17,000 employees, or 10% of its global workforce.
The layoffs will impact employees at all levels including executives, managers and manufacturing workers at its facilities in Washington and South Carolina.
This move is part of an ongoing effort by the Seattle-based aeroplane maker to address significant financial challenges and streamline operations under new CEO Kelly Ortberg.
The layoffs come as Boeing works to stabilize its production line for the popular 737 MAX jet, following a costly labor strike that interrupted production for weeks.
“We will continue forward with our previously announced actions to reduce our workforce levels to align with our financial reality and a more focused and streamlined set of priorities,” Ortberg said.
“These structural changes are important to our competitiveness and will help us deliver more value to our customers over the long term.”
Boeing also said it will cease production of its 767 aircraft in 2027 after completing its backlog of orders for 29 planes.
Shares of Boeing closed at $138 on Thursday, having shed about 45% so far in 2024.