### Boeing Announces 17,000 Job Cuts Amid Ongoing Strike and Delays

In a major move, Boeing has announced a significant reduction in its workforce, the delay of its 777X jet deliveries, and substantial financial losses for the third quarter. This decision, influenced by a protracted strike involving 33,000 U.S. West Coast workers, reflects the turbulent period the U.S. aerospace giant is undergoing.

CEO Kelly Ortberg informed employees of the need to align the company’s workforce with its current financial situation, citing the month-long strike's impact on the production of 737 MAX, 767, and 777 jets. "We reset our workforce levels to align with our financial reality and to a more focused set of priorities. Over the coming months, we are planning to reduce the size of our total workforce by roughly 10 percent," Ortberg stated.

Boeing's strategic overhaul includes layoffs impacting executives, managers, and employees alike, and has led to a 2.12% drop in the company’s shares during after-market trading. Thomas Hayes, an equity manager at Great Hill Capital, noted that these layoffs could pressurize striking workers to reach a resolution swiftly to avoid permanent unemployment.

The delay in the 777X jet deliveries, now expected in 2026, stems from various developmental challenges, including a pause in flight tests and ongoing labor disputes. Moreover, the company has recorded pre-tax earnings charges of $5 billion, affecting its defense business and commercial plane programs.

Financial forecasts for the third quarter are bleak, with expected revenues of $17.8 billion, a loss per share of $9.97, and a negative operating cash flow of $1.3 billion. This is relatively better than the anticipated negative cash flow of $3.8 billion, according to LSEG data.

Securing an end to the strike is crucial for Boeing, which risks losing its investment-grade credit rating due to the estimated $1 billion monthly loss attributed to the labor dispute. Boeing has accused the machinists' union of failing to negotiate in good faith, further complicating matters.

Boeing has also shared plans to conclude its 767 freighter program by 2027, while continuing production for the KC-46A Tanker. Ending a previously announced furlough program for salaried employees is another step the company is taking in response to the strike's financial toll.

As Boeing explores options to raise billions through the sale of stock and equity-like securities to mitigate its roughly $60 billion debt, analysts suggest the company might need to secure between $10 billion and $15 billion to maintain its credit ratings, which currently hover just above junk status.