Boeing stock slides as company plans to cut 17,000 jobs, delays jet delivery amid labor strike

Published On Oct 11, 2024, 5:24 PM

Boeing is facing significant challenges, announcing plans to cut its workforce by 10%, amounting to about 17,000 jobs, while delaying the delivery of its new 777X jet to 2026 due to ongoing labor strikes. The strike, particularly affecting its dealings with the International Association of Machinists and Aerospace Workers (IAM), is expected to cost the company around $1 billion per month. Additionally, Boeing's high debt, approximately $58 billion, and predictions of a $10 billion cash outflow for 2024 have led analysts to expect the company will need to raise funds through an equity offering. Credit ratings are also under pressure, increasing the likelihood of a downgrade if the strike persists.