Peter McNally, head of global analyst at Third Bridge, spoke on “The Big Money Show” about how the Boeing factory workers' strike is impacting business.
Boeing plans to lay off 10% of its workforce, or about 17,000 people, and cut production in the coming months as union strikes continue.
Chief Executive Officer Kelly Ortberg, who took over as CEO in August, told staff in a memo Friday that the cuts include executives, managers and employees. .
“Our business is in a difficult situation and the challenges we face together cannot be overstated,” Ortberg told staff. “This situation requires tough decisions and will help us remain competitive.” and provide it to our customers over the long term.”
The company has approximately 170,000 employees worldwide, many of whom work at manufacturing facilities in South Carolina and Washington.
Boeing shares fell 1.1% in after-close trading.
Boeing CEO ends $4.1 million payment to Seattle headquarters during factory worker strike: 'They'll pay us too'
The fuselage and one of the engines of a Boeing 777-9 jetliner on the tarmac. (Giuseppe Cacace/AFP via Getty Images/Getty Images)
The company also announced that it will end production of the 767 in 2027 after completing its current 29-plane order.
Boeing workers vote to strike after union members reject contract negotiations
Additionally, the rollout of the new 777X has been postponed to 2026 instead of 2025. The postponement comes after the recent discovery of a defective part that halted test flights earlier this year.
Boeing employees in Seattle voted overwhelmingly in favor of a strike on September 12, characterizing the embattled airline giant as a boon for workers given the company's tight financial situation. rejected the contract. (Jason Redmond/AFP via Getty Images/Getty Images)
The troubled aerospace company continues to face a month-long strike involving more than 33,000 workers in the Seattle area. The strike halted production of Boeing's best-selling planes, the 737 Max, 777, and 767. The company still manufactures 787s at a non-union factory in South Carolina.
The strike began after workers overwhelmingly rejected preliminary contract negotiations offered by the company.
The main demand of striking workers from the International Association of Machinists and Aerospace Workers (IAM) is a 40% wage increase.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| BA | boeing company | 151.03 | +4.36 |
+2.97% |
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Thomas Hayes, equity manager at Great Hill Capital, said in an email that the layoffs could put pressure on employees to call off the strike.
“Striking workers who are temporarily without a paycheck don't want to be permanently without a paycheck,” Hayes said. “We expect the strike to be resolved within a week as these workers do not want to be subject to the next 17,000 job cuts.”
Fox News Digital's Jasmine Baehr and Reuters contributed to this report.
