Boeing to cut 17,000 jobs, delay first 777X jet as strike hits finances

Boeing will cut 17,000 jobs -- 10% of its global workforce -- delay first deliveries of its 777X jet by a year and record $5 billion in losses in the third quarter, as the US planemaker continues to spiral during a month-long strike, Report informs via Reuters.

CEO Kelly Ortberg said in a message to employees that the significant downsizing is necessary "to align with our financial reality" after an ongoing strike by 33,000 US West Coast workers halted production of its 737 MAX, 767 and 777 jets.

"We reset our workforce levels to align with our financial reality and to a more focused set of priorities. Over the coming months, we are planning to reduce the size of our total workforce by roughly 10%. These reductions will include executives, managers and employees," Ortberg's message said.

Boeing shares fell 1.1% in after-market trading.

The sweeping changes are a big move by Ortberg, who arrived in August at the helm of the beleaguered planemaker promising to reset relations with the union and its employees.

Boeing recorded pre-tax earnings charges totaling $5 billion for its defense business and two commercial plane programs. On September 20, Boeing ousted the head of its troubled space and defense unit Ted Colbert.

Boeing, which reports third-quarter earnings on October 23, said in a separate release it now expects revenue of $17.8 billion, a loss per share of $9.97, and a better-than-expected negative operating cash flow of $1.3 billion.