Boeing Stock: Massive Job Cuts Amid Financial Struggles

Boeing faces significant financial challenges as it announces plans for drastic cost-cutting measures. The aerospace giant intends to reduce its workforce by approximately 17,000 employees, equivalent to 10% of its total staff. This decision comes in the wake of disappointing third-quarter results, with revenue falling to $17.8 billion, well below analyst expectations. The company's financial woes are further exacerbated by a $5 billion write-down, with $3 billion attributed to its commercial aircraft division.

Production Delays and Market Impact

The ongoing IAM union strike has severely impacted production at Boeing's facilities near Seattle, contributing to the company's financial strain. Additionally, the delivery of the new 777X model faces further setbacks, with the passenger version now slated for 2026 and the freight variant for 2028. These challenges have taken a toll on Boeing's stock performance, with shares declining 1.8% in pre-market trading following the profit warning announcement. As the company grapples with these issues, it faces the daunting task of regaining investor confidence and stabilizing its market position.