Boeing Stock: Massive Job Cuts Amid Financial Turbulence

Boeing is set to undergo significant changes as it grapples with financial challenges and production setbacks. The aerospace giant plans to reduce its global workforce by approximately 10%, affecting around 17,000 employees. This drastic measure comes as the company anticipates substantial financial strain, with a projected loss of $9.97 per share for the third quarter of 2024, significantly higher than the previous year. Revenue is expected to fall short of expert predictions, reaching $17.8 billion against the forecasted $18.43 billion.

Production Delays and Labor Disputes

Adding to Boeing's woes are delays in key aircraft programs. The 777-9 model's initial delivery has been pushed to 2026, while the 777-8 freighter version is now slated for 2028. The company also intends to discontinue production of the 767 freighter by 2027. These setbacks result in billion-dollar write-offs, heavily impacting both commercial and defense divisions. Furthermore, Boeing faces labor disputes, having filed a complaint against the union representing striking factory workers in its northwestern U.S. facilities, potentially exacerbating production delays and financial performance issues.