Boeing CEO Kelly Ortberg Announces Significant Layoffs Amid Financial Struggles

Boeing, under the leadership of its new CEO Kelly Ortberg, has announced a major restructuring effort that includes laying off over 17,000 employees across the company. This move is part of Boeing’s response to ongoing financial difficulties, which have been exacerbated by the aftermath of the 737 Max crashes in 2018 and 2019, regulatory challenges, and a recent machinists’ strike that lasted nearly two months.

The layoffs, which affect approximately 10% of Boeing’s workforce, span all divisions including commercial airplanes, defense, and global services. Facilities in multiple states, including Washington, Missouri, Arizona, and South Carolina, will be impacted. Specifically, over 200 employees in Charleston, South Carolina, are expected to be let go, including managers, executives, and other staff members.

Kelly Ortberg, who recently took the helm at Boeing, attributed the job cuts to overstaffing. Before these latest notices, Boeing employed around 66,000 workers in Washington state alone. The company is facing significant operational and reputational challenges, including a recent fuselage panel failure on an Alaska Airlines plane and a capped production rate of 38 737 Max planes per month by the FAA.

It is noteworthy that Kelly Ortberg’s tenure at Boeing follows his retirement from Raytheon Technologies, where he served as a special adviser to CEO Greg Hayes after stepping down as CEO of Collins Aerospace last February. Ortberg will continue to serve on the Raytheon Technologies board of directors).