Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Boeing will cut about 17,000 jobs and delay the first delivery of its 777X jet, in the plane maker’s latest effort to overcome its growing financial woes.
Chief executive Kelly Ortberg announced the cuts, equivalent to 10 per cent of its workforce, in a message to staff on Friday. “Our business is in a difficult position, and it is hard to overstate the challenges we face together,” said Ortberg, who was appointed in late July.
Boeing needed “to reset our workforce levels to align with our financial reality and to a more focused set of priorities”, he said, adding the cuts would include executives, managers and employees.
Ortberg also announced that first delivery of Boeing’s 777X jet — which was first due to enter commercial service in 2020 — would be delayed again, from 2025 to 2026.
The US company in a separate Friday statement warned investors that its third-quarter results, which are due later this month, would “recognise impacts” related to the work stoppage caused by its machinists, who went on strike last month, as well as “charges for certain programmes”.
It said revenues for the quarter would come in at $17.8bn, a figure which would fall short of analysts’ expectations by about 3 per cent. The lossmaking company, now expects an operating cash outflow of $1.3bn for the quarter.
It plans to take pre-tax charges of $5bn in the quarter, including $3bn on the 777X and 767 commercial plane programmes and $2bn for its defence, space and security business.
Boeing shares were down about 2.5 per cent in after-hours trading.
