Boeing Announces Layoffs, 777X Delay

Boeing announced 17,000 layoffs, a one-year delay in the 777X program and the end of production for the civilian freighter version of the venerable 767 on Friday as it grapples with reduced revenues from a lingering strike and a seemingly endless stream of production and quality issues. “We reset our workforce levels to align with our financial reality and to a more focused set of priorities," CEO Kelly Ortberg said in a message to employees. "Over the coming months, we are planning to reduce the size of our total workforce by roughly 10 percent. These reductions will include executives, managers and employees.” 


This is a companion discussion topic for the original entry at https://www.avweb.com/aviation-news/boeing-announces-layoffs

Surprise surprise surprise…

Oh my, the hole seems to be getting deeper. What needs to be done is to upgrade the 757/767 frames and engines to offer twin aisle access to the cabin, enhanced passenger comfort with much better seat spacing, and increased cargo capacity. The increased fuel burn will be offset with increased freight capacity and happier customers paying slightly higher ticket prices. The 737 variants have reached the end of the line. It’s too early to write Boeing off yet but I think it can be salvaged. Air freight is a really big market and wants high frequency, decent costs and reliability. How difficult is this to comprehend? A truly sad Thanksgiving for the folks affected by the layoffs. I only hope that a Seattle based Boeing will emerge from the ashes and begin a new and sustainable chapter of air transport.

Ah, the humanity! Boeing just can’t seem to get it together. The company is slashing 17,000 jobs, pushing back the 777X until 2026, and halting 767 freighter production—all due to strikes and persistent quality problems. With huge financial losses on the nose, Boeing is desperately cutting costs and losing face in the process. Meanwhile, Airbus is sitting pretty, snapping up frustrated customers.

Time for immediate government intervention to re-float this ship and get it back on course (before this strike completely sinks it). How this dumpster fire has been allowed to continue growing for the past three years is appalling–where has the board of directors been this whole time, on Tahitian beaches? Bill Boeing has been turning over so many times in his grave that he’s halfway to China…

What we need to hear from the new CEO is a 30/60/ 90 day plan to address the most critical issues (of which there are many), then a one to five year plan for strategic commercial and defense projects. The window for the NMA (797) is all but closed, but Boeing Commercial will not survive the competition without SOMETHING on the table.

How sad such a once prestigious aerospace company has been allowed to degenerate due to greed, incompetence and mismanagement.

Darn those McDonnell Douglas accountants!

So how, exactly, will the layoff of 17,000 skilled and experienced workers at Boeing help to improve quality??? They really don’t get it, do they? Shifting the focus to growing profits and raising the share price didn’t get them into enough trouble, so now they’re going to Double Down on that strategy? Simply amazing…

And in other news, some airlines, including British Airways, are cancelling flights due to be flown by the Dreamliner, because the engines are no good and they cannot get spare parts…
The much vaunted tech which allows each engine to be monitored remotely all the time is not much use if all it does is show a service light which cannot be fixed.

“We reset our workforce levels to align with our financial reality and to a more focused set of priorities,"

I’ll start by saying that over time, I have begun, more to support unions. Over the course of my career I have seen time and again Corporations take more and more from employees while giving more and more to shareholders. yes, that is the supposed point of capitalism (though that can be debated).

Boeing is a mess. As now general knowledge the company started downhill when the focus went from good engineering to “good” capitalism (aka MaccyD take over). Engineering is what made Boeing a powerhouse in the aviation industry from before WWII to recently. Sadly Ortberg, though coming in with plesant words of “we going to turn this around” has begun to make the same mistakes of his predecessor’s. Screw the workers, blame the workers, and protect the cash.

He made a mistake trying to force a union vote by going public on the deal, one could believe the union would have voted for. Did he think the union woudl roll over and say thank you? Now he wants to get ride of 10% of the work force, because management had F’d up royally since before the 737 MAX era.

Right now, Ortberg should take any reasonable deal with the unions and get people back to work. Boeing may be too big to fail, but it is not too big to fall to a point where it is taken over by another company as they bleed dollars by losing customers. Instead of reducing employment, reduce the pay or out right fire management that created the mess they are in today. Prompt engineers back into management and for gods sake, put quality over quantity.

Yet the unions need to help as well. Help figure way to make a quick end to the strike (as it hits more than Boeing) by suggesting profit sharing, or staggering better benifits over time with conditions to allow the company to stabilize financially.

Ortberg needs to energize the Boeing workforce, not beat them down, and if you have to writ off short term labor costs for long term regrowth of the company…FFS, do it. Frankly, I see Boeing as done. they do not have a new plane in design that won’t be done for years; the 737 has “maxxed out” and they cannot get their newest heavy out the door. Propping up the 757 (which they would nede to bring the tooling back) and 767 would only be a stopgap without innovation and Boeing blew it when they felt accounting more important than engineering for an aviation company. They screwed up Starliner, the KC refueler, and other military/space projects to a point where NASA may question whether to include Boeing in future space programs.

I agree. I am not as experienced as Ortberg, but if it was up to me, I would have offered a better deal - 50% increase, however spread over 5 -7 years BUT depending on performance. Yes give the employees say at management decisions, but tell them simply: either you stick to your past grievances and we all end in the dumpster, or let’s work together (if anyone remembers this). and I agree 100% that this is a direct result of the moronic previous management that believed that workers are always replaceable and that all but management are unimportant, equivalent and interchangeable.
Yes during those years Boeing will at best be at zero profit. Yes stock holders will have to pay for thrusting Jack Welchers. But I think it is this or folding.

I imagine what I’ve heard affects all of the airlines. A friend who ranks very close to the top seniority among United pilot instructors has a lot of time off because Boeing isn’t delivering enough planes to meet demand. The lines are cutting back on pilot and other training for this reason as well.

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