**Boeing Faces Escalating Crisis Amid Strikes and Job Cuts**

Acting Labor Secretary Julie Su flew to Seattle on Monday in an attempt to mediate a growing conflict at Boeing, where a prolonged machinists strike and upcoming job cuts have created turmoil within the company. This intervention comes as Boeing reveals its plans to lay off 17,000 workers and incur $5 billion in charges, further extending a challenging year for the aerospace giant.

The strike, now entering its fifth week, involves approximately 33,000 workers who are demanding a 40% wage increase and the reinstatement of a defined-benefit pension, which they had agreed to relinquish in 2014. Secretary Su is meeting directly with both parties for the first time to encourage progress in negotiations.

The situation has ripple effects beyond Boeing’s immediate workforce. Shares of the company declined by 1.2% following an after-hours announcement that not only confirmed the job cuts but also delayed the launch of the 777X jetliner until 2026 and announced the end of civil 767 freighter production. Boeing is set to provide more specifics later this week through a series of meetings.

The company expects a quarterly cash burn of $1.3 billion, which, although better than anticipated, still marks the third consecutive quarter of net cash loss. Sources indicate that Boeing will primarily resort to involuntary layoffs rather than voluntary departures to limit severance costs and retain essential skills. This layoff strategy underscores the pressing need for Boeing to manage its workforce carefully as competitors are snapping up skilled labor to mitigate pressures on aerospace supply chains.

Emirates Airline President Tim Clark has expressed strong concerns about Boeing’s delays, especially as his airline holds a significant order for 150 of the 777X jets. Clark doubts Boeing's ability to provide reliable delivery forecasts and has openly questioned the company's financial stability. He hinted at commercial repercussions and suggested that Boeing might face an imminent investment downgrade, potentially leading to Chapter 11 bankruptcy if it fails to secure additional funds.

Boeing currently holds over $10 billion in gross cash, which analysts consider sufficient to alleviate some immediate financial strain. However, the company is under pressure to raise up to $15 billion through a share issue by the year’s end to stabilize its finances. Concerns over Boeing's financial health remain acute among major airlines which have substantial deposits tied up with the planemaker.

As Boeing navigates this multi-faceted crisis, U.S. Secretary of the Army Christine Wormuth noted that recent layoffs are not anticipated to affect defense programs, including those for helicopters and munitions.