Boeing (BA, Financial) has announced plans to reduce its global workforce by approximately 10%, affecting around 17,000 positions. The job cuts will encompass executives, managers, and regular employees. This decision comes as the company anticipates third-quarter revenues to fall significantly short of Wall Street expectations.
The ongoing challenges faced by Boeing include a strike by about 33,000 workers at its West Coast plant, which began in mid-September and remains unresolved. The strike has disrupted production and drained financial reserves, exacerbating Boeing's operational difficulties.
Additionally, Boeing has decided to delay the delivery of its 777X aircraft until 2026, further impacting its financial outlook. In response to these challenges, international credit rating agencies are considering downgrading Boeing's credit rating. Standard & Poor's has mentioned the potential to downgrade Boeing to junk status due to the strike, while Moody's has hinted at a similar move. Fitch Ratings has acknowledged increased operational risks but has yet to announce any changes.
