Boeing to lay off 17,000 employees and to delay 777X program

Boeing intends to reduce its workforce by approximately 10% as it faces ongoing financial challenges and a significant strike that is impacting the production of its most popular airline models. The announcement came from newly appointed CEO Kelly Ortberg, who indicated that the layoffs will affect a range of positions, including executives and managers. The company has incurred losses exceeding $25 billion since 2019, and a recent attempt to negotiate with striking union machinists ended without an agreement. From a transportation perspective, such layoffs could have serious implications for Boeing's operational capabilities and long-term competitiveness in the aviation market. Reducing the workforce may initially stabilize finances but risks diminishing production capacity and innovation, particularly if the strike continues. The aviation industry relies heavily on skilled labor, and significant cuts could lead to talent attrition, making it harder for Boeing to ramp up production once the strike is resolved. It's crucial for the company to balance cost-cutting measures with investments in workforce capability to ensure recovery and maintain its leadership position in the sector.