Aircraft maker Boeing is preparing to make significant cuts to its workforce due to strikes and safety issues with its planes.
The company plans to cut 10 percent of its workforce, or about 17,000 people, CNBC reported on friday.
The move comes “as the company's losses widen and a machinists' strike that has kept aircraft factories idle enters its fifth week,” the article said, adding that Boeing also announced plans to launch its wide-body 777X jet. It added that it would be postponed until 2026.
CEO Kelly Ortberg has been in the job for more than two months and is tasked with helping the company regain stability following serious safety and manufacturing issues.
An example of a safety issue occurred in July when a Boeing plane carrying 174 passengers lost a wheel in mid-air after taking off from Los Angeles International Airport, according to Breitbart News, the first such incident this year. He pointed out that it was the second time.
In another incident in May, a Boeing plane had to make an emergency landing in Indonesia due to an engine fire. According to Breitbart News, the jet was carrying 468 passengers.
The CNBC report continued:
Boeing announced in a surprise release Friday that it plans to report a loss of $9.97 per share in the third quarter. Pre-tax charges are expected to be $3 billion for the commercial aircraft division and $2 billion for the defense business.
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The machinists' strike is a further challenge for Ortberg. Credit rating agencies have warned the company is at risk of losing its investment-grade rating, and Boeing is running out of cash in what company executives had hoped would be a turnaround year.
UPI reported Wednesday that negotiations between Boeing and its unions have “broken down.”
“The International Association of Machinists and Aerospace Workers said Boeing is refusing to compromise on a variety of issues, including wages, retirement plans, vacation and sick leave,” the article said.
