Boeing to cut 10% of workforce, stop most 767 production amid strike

Boeing will lay off 10% of its workforce in the coming months and cut its commercial jet production amid a month-old strike that has left the company burning through cash as its factories sit idle.

The company said Friday it would end production of its Everett-built 767 freighter in 2027, after it completed current orders for 29 jets. It also delayed the rollout of another plane built in Everett, its new 777X, to 2026, following years of certification delays and the recent discovery of a defective part that grounded test flights earlier this year.

The job cuts will impact roughly 17,000 workers across all levels of the company, Boeing said Friday. It’s not clear how the cuts will impact the company’s 66,000-person Washington workforce, or the striking Machinists. In a note to employees Friday, new Boeing CEO Kelly Ortberg told workers the company had to “reset our workforce levels to align with our financial reality.”

“We need to be clear-eyed about the work we face and realistic about the time it will take to achieve key milestones on the path to recovery,” Ortberg continued.

“We also need to focus our resources on performing and innovating in the areas that are core to who we are, rather than spreading ourselves across too many efforts that can often result in underperformance and underinvestment,” he said.

After a year of slow production following a panel blow out in January, Boeing was already in a weakened financial position when more than 33,000 machinists walked off the job on Sept. 13.

Now, as the strike enters its fifth week, each party has accused the other of refusing to negotiate in good faith and the two remain deeply split on the terms of a new contract, particularly around wage increases and retirement benefits. Talks broke down this week after two days at the bargaining table, leading Boeing to withdraw its most recent offer.

On Friday, Boeing said it expected to lose $1.3 billion in operating cash flow during the third quarter this year, according to financial results released before its scheduled earnings call later this month. It expected third quarter revenue of $17.8 billion, and a loss of $9.97 per share.

Picketing outside Boeing’s Everett factory Friday, Jeremy Niethamer, a 12-year Boeing veteran, remained steadfast in holding the line even in the face of looming layoffs.

“What we’re asking for is not going to cripple the company,” he said. “We’re not asking for too much … and I think that’s why the community is behind us.”

Shortly after the Machinists walked out in September, Boeing initiated one-week furloughs for nonunion employees to preserve money as its factories sat idle. On Friday, Boeing said it would end the cycle of furloughs and reduce its workforce by 10% over the coming months.

“We know these decisions will cause difficulty for you, your families and our team, and I sincerely wish we could avoid taking them,” Ortberg wrote to employees Friday. “However, the state of our business and our future recovery require tough actions.”