Written by by Tyler Durden at zerohedge.com
In what some have called a panic/desperation negotiating tactic, Boeing has announced (late on a Friday afternoon) that it will slash its workforce by 10% as the pummeled planemaker struggles with a cash-crunch amid a drawn-out strike and ongoing quality control (to put it nicely) issues.
In a memo to employees, CEO Kelly Ortberg noted that the reductions will include executives, managers and employees, warning that:
“Our business is in a difficult position, and it is hard to overstate the challenges we face together.”
Boeing ended 2023 with 171,000 employees.
The company said it expects to report third quarter revenue of $17.8 billion, and a loss per share of $9.97, according to preliminary figures.
The company unveiled the measures and the earnings figures as it seeks to get its negotiations with labor unions back on track.
Boeing has made two offers for higher wages, both of which were turned down by workers.
About 33,000 employees at its main Seattle-area facilities have been on strike for a month now, devastating production and draining Boeing’s reserves.
The latest talks collapsed earlier this week, with no clear path when and how they might resume.