Boeing begins process to cut 17,000 jobs
What's the story
Boeing will begin sending layoff notices this week as part of its plan to cut around 17,000 jobs or nearly 10% of its global workforce.
The layoffs come as part of the company's larger strategy to streamline operations.
The US-based employees receiving these notices will continue to receive their salaries until January as per federal law requirements, which mandate a 60-day notice period.
Strategy shift
Workforce adjustment amid financial challenges
Boeing has said that the layoffs are part of an effort to "adjusting our workforce levels to align with our financial reality and a more focused set of priorities."
The company is now working under new CEO Kelly Ortberg, to restart production of its top-selling 737 MAX aircraft.
The move comes after a recent strike of over 33,000 US West Coast workers that heavily affected the production of most commercial jets.
Financial stability
$24 billion secured in financing amid layoffs
In late October, Boeing obtained more than $24 billion in financing to shore up its finances and preserve its investment-grade rating.
The move was necessitated by persistent safety concerns and production disruptions related to the 737 MAX aircraft.
The company has had a rough year, including a mid-flight incident involving a door panel on a 737 MAX aircraft, CEO's step down, regulatory scrutiny over safety practices, and largest-ever union strike which ended on November 5.