Boeing plans to cut 10% of its workforce, or about 17,000 jobs, CEO Kelly Ortberg announced Friday.
The airline also announced that deliveries of the 777X aircraft will be delayed until 2026 and production of the 767 freighter will cease in 2027.
“Our business is in a difficult situation, and the challenges we face together cannot be overstated,” Ortberg said in a statement.
“Beyond navigating the current environment, rebuilding the company will require difficult decisions and structural changes that will enable us to remain competitive and serve our customers over the long term,” he added. .
Boeing's big job cuts come nearly four weeks into a costly strike and as the company remains at an impasse in negotiations with its mechanics.
Approximately 33,000 workers had resigned in mid-September. As of September 27, the strike had cost the company, its employees and suppliers a total of $1.4 billion, according to consulting firm Anderson Economic Group.
Boeing and the International Association of Machine Manufacturers (IAM) union returned to the negotiating table on Monday. However, negotiations quickly broke down and the company withdrew its earlier offer on Tuesday.
The aircraft manufacturer is offering employees a 30% raise and a $6,000 contract approval bonus, a significant increase from the 25% raise and $3,000 bonus it had originally proposed.
The union described the proposal as “progress”. But on Tuesday, the overwhelming majority of members announced they were against it.
Boeing said the union “did not seriously consider our proposals” and instead made “non-negotiable demands that go far beyond what we can accept to remain competitive as a company.” insisted.
The aircraft maker has been under intense scrutiny this year after a door plug on a Boeing 737 Max 9 exploded during an Alaska Airlines flight in January.
