Boeing is set to reduce its workforce by 10%, cutting approximately 17,000 jobs as the company struggles with multiple challenges across its business sectors. In an email to staff, Boeing CEO Kelly Ortberg announced that the job cuts would affect all levels of the company, including executives, managers, and employees.

The aerospace giant has been facing disruptions due to a prolonged strike, mounting concerns over the quality of its planes, and financial strain within its defense manufacturing arm. Ortberg noted that the company would begin reducing its headcount in the coming months, with more details expected next week. Boeing also confirmed it will not proceed with the next cycle of furloughs.

“The state of our business and our future recovery require tough actions,” Ortberg stated, emphasizing the need for immediate measures to stabilize the company.

In addition to the job cuts, Boeing has pushed back the delivery date of its much-anticipated 777X aircraft. Originally set for an earlier release, the first deliveries are now expected in 2026 due to delays caused by developmental issues, flight test pauses, and the ongoing work stoppage.

The strike, which has lasted for several weeks, involves around 33,000 workers demanding better pay. Talks between the company and union negotiators collapsed this week. Union leader John Holden stated, “We’re in this for the long haul and our members understand that.”

Adding to Boeing’s woes, global credit ratings agency S&P has placed the company on CreditWatch, warning of a potential downgrade if the strike continues. The company has also been under congressional scrutiny following a January incident when a defect in a Boeing 737-MAX caused a panel to blow out mid-flight. Although no injuries were reported, the incident added pressure on Boeing to address quality control concerns.

As the company navigates these turbulent times, Ortberg promised employees that leadership would provide more detailed guidance on the upcoming changes soon.