By
Seattle Times business reporter
Boeing will lay off 10% of its workforce in the coming months and is cutting its production schedule amid a month-old strike that has impacted the company’s financial position.
Boeing said Friday it would end production of its 767 freighter in 2027, after it completed current orders for 29 jets in its Everett facility.
It also delayed the rollout of another Everett-built plane, its new 777X, from 2025 to 2026, a result of the work stoppage driven by the Machinists union strike and the discovery of a defective part that grounded test flights earlier this year.
“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,” new Boeing CEO Kelly Ortberg said in a letter to employees Friday.
More on Boeing and the Machinists strike
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- Boeing raises its offer to the Machinists to try to end the strike
- Hit by strike, Boeing flies in out-of-state janitors, applies furloughs broadly
- Boeing to furlough tens of thousands of workers as Machinists strike bites
- Furloughed in WA? Here’s what you need to know
- How long Boeing Machinists’ strike could last and how it impacts WA
- Machinists hit picket lines on Sept. 13 after rejecting contract offer
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“We also need to focus our resources on performing and innovating in the areas that are core to who we are, rather than spreading ourselves across too many efforts that can often result in underperformance and underinvestment,” he said, adding that the company remains focused on safety, quality and delivering to customers.
After a year of slow production following a panel blow out in January, Boeing was already in a weakened financial position when more than 33,000 machinists walked off the job on Sept. 13.
As the strike nears its fourth week, there is no end in sight. Talks between the two parties broke down earlier this week, leading Boeing to withdraw its most recent offer.
“We know these decisions will cause difficulty for you, your families and our team, and I sincerely wish we could avoid taking them,” Ortberg wrote to employees Friday. “However, the state of our business and our future recovery require tough actions.”
Shortly after the strike began, Boeing began one-week furloughs throughout the company to preserve money as its factories sat quiet. Now, it will end the cycle of furloughs in November and reduce its workforce by 10% in the coming months, Boeing said Friday.
The layoffs will affect all functions across Boeing, from executives to managers to employees. The company will share detailed information with workers next week, Ortberg said, as Boeing resets its “workforce levels to align with our financial reality and to a more focused set of priorities.”
It’s not clear how the layoffs will affect the striking machinists.
Boeing currently has 170,000 employees companywide, including 66,000 in Washington.
In his letter to employees, Ortberg also said Boeing’s defense and space division was “simply not where it needs to be.” Boeing expects “substantial new losses” in its defense division this quarter, driven by the strike, “continued program challenges” and the decision to end production on the 767 freighter.
In Everett, Boeing will end production of its 767 commercial freighter in 2027, after completing the 29 current orders. It will continue producing the KC-46 military tanker and the 777-9.
This is a developing story and will be updated.