Boeing, one of the largest aerospace companies in the world, has announced significant layoffs and operational changes in response to ongoing challenges, including a machinist strike and financial pressures. As it repositions itself for the future, Boeing plans to cut 10% of its workforce and cease production of its 767 freighter model by 2027.
Wow. Was just shutting down my real job and saw this. Companies release this kind of stuff after 4 on Fridays because they don't want anyone to see it. Boeing laying off 10% of entire workforce. (17k people) How'd that machinist strike work out? pic.twitter.com/Hw8eK10AlS
The layoffs will affect approximately 10% of Boeing’s global workforce, covering a range of positions including executives, managers, and factory employees. CEOKelly Ortberg explained in an internal email that these measures are necessary to address the financial strain caused by the strike streamline operations and refocus resources. The month-long machinists’ strike, centred on disputes over wages and benefits, has already halted production at key plants, costing millions of dollars each day. Both Boeing and the union have accused each other of bad-faith bargaining, with no immediate resolution in sight.
“We need to be clear-eyed about the work we face and realistic about the time it will take to achieve key milestones on the path to recovery,” Ortberg said. These layoffs are part of a broader cost-saving initiative to ensure the company’s long-term viability.
End of 767 Freighter Production
As part of its restructuring, Boeing will end production of its 767 freighter, a model in service since the 1980s. However, it will continue to manufacture the KC-46A tanker, a military variant based on the 767 platform. The company plans to fulfil its current orders for the 767 by 2027 before discontinuing the model entirely. This move follows delays in other major programmes, such as the 777X, whose delivery has been pushed to 2026 due to ongoing production stoppages and test flight delays.
Financial and Strategic Repercussions
Boeing is not just facing disruptions in commercial aircraft but also within its defence division. The company anticipates significant losses in its Boeing Defense, Space & Security unit due to the work stoppage and ongoing programme challenges. While the 767’s departure marks the end of an era, Boeing’s efforts will increasingly focus on its core areas, such as its next-generation aircraft like the 777X and defence projects.
Conclusion
Boeing’s decision to implement layoffs and phase out the 767 freighters reflects its efforts to navigate the dual pressures of an ongoing strike and wider industry challenges. As the aerospace giant reshapes its future, it will aim to recover from the financial and operational hurdles posed by the work stoppage while focusing on more profitable and strategic ventures.
