### Boeing to Lay Off 17,000 Workers Amid Mounting Financial Losses and Prolonged Strike

In a drastic response to its financial woes and ongoing factory strike, Boeing is set to reduce its workforce by about 10%, translating to around 17,000 employees. This announcement comes as the company's operational challenges continue to escalate, leaving its aircraft factories idle for nearly a month due to a machinist strike.

The aerospace giant also disclosed that the introduction of its new 777X wide-body aircraft will be postponed until 2026, a significant delay from the original schedule. Furthermore, the company will cease the production of commercial 767 freighters by 2027, upon completion of existing orders.

In a recent memo to staff, CEO Kelly Ortberg revealed that Boeing expects to incur a loss of $9.97 per share for the third quarter. The company anticipates a pretax charge amounting to $3 billion within its commercial airplane sector and an additional $2 billion related to its defense operations. Preliminary figures suggest an operating cash outflow of $1.3 billion for the third quarter.

"Our business is navigating an extremely challenging environment, requiring us to make difficult decisions and structural changes to remain competitive and meet our customers' needs in the long term," Ortberg stated. Taking on the CEO role just over two months ago, Ortberg is confronted with the monumental task of steering Boeing through safety and manufacturing crises, compounded by the labor dispute.

Credit rating agencies have signaled that Boeing risks losing its investment-grade rating, exacerbated by a cash burn rate exceeding $1 billion per month due to the strike. The labor strike, which started on September 13 following a rejected tentative agreement, adds to these difficulties. Boeing recently pulled a contract offer and lodged an unfair labor practice charge against the International Association of Machinists and Aerospace Workers, accusing the union of bad-faith negotiations.

The workforce reduction is expected to take effect "over the coming months," following a period where Boeing and its extensive network of suppliers have been grappling to recruit staff in the aftermath of the Covid-19 pandemic. As the company braces for these sweeping changes, the ongoing strike and financial pressure underscore the unprecedented challenges lying ahead for Boeing.