A senior U.S. official is working to ease a strike at Boeing, as the company announced plans to cut 17,000 jobs and take $5 billion in charges. The strike, involving 33,000 workers seeking a wage increase, has been ongoing since September. Layoff notices will be sent out next month to thousands of workers, including those in the commercial aviation division. The job cut plan has been criticized by the International Association of Machinists and Aerospace Workers as “corporate greed.” Boeing is refraining from voluntary departures to avoid losing key skilled workers. The delay in 777X deliveries, as well as the broader crisis facing Boeing, has raised concerns in the industry about the planemaker’s future. Emirates Airline President Tim Clark has expressed doubts about Boeing’s ability to overcome its challenges, warning of potential investment downgrades. Boeing’s cash reserves are being closely monitored, with analysts expecting the company to raise up to $15 billion through a share issue. The financial risk posed by Boeing has some major airlines, including Emirates, considering limiting their deposits with the company. S&P has also warned that Boeing risks losing its investment-grade credit rating due to its financial difficulties.
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Boeing is set to issue layoff notices to thousands of workers amid escalating turmoil
