Boeing mentioned Friday it could slash about 17,000 workers, roughly 10% of its workforce, and that it could finish manufacturing of a cargo airplane made in Washington.

The transfer comes as plane machinists within the Puget Sound area and different elements of the West Coast have been on strike for practically a month after rejecting a contract provide from the corporate in September. Contract negotiations stalled earlier this week and manufacturing stays halted at Boeing websites across the area.

Earlier than the strike, the corporate was already going through monetary losses and mounting debt.

“We should be clear-eyed in regards to the work we face and life like in regards to the time it can take to realize key milestones on the trail to restoration,” Boeing President and CEO Kelly Ortberg mentioned in a message to workers.

“We additionally have to focus our assets on performing and innovating within the areas which are core to who we’re, slightly than spreading ourselves throughout too many efforts,” he added.

Ortberg mentioned layoffs will happen “over the approaching months” and contain executives, managers and workers.

Along with the workforce reductions, Boeing mentioned it could finish manufacturing of its 767 business freight airplane in 2027 after delivering plane already ordered. The airplane is inbuilt Everett. The corporate may also additional delay its 777X program, with first deliveries now anticipated in 2026. That airplane is made in Everett as nicely.

In the meantime, about 30 members of Congress, together with Democratic U.S. Rep. Pramila Jayapal of Washington, despatched a letter to Ortberg and Jon Holden, president of the Worldwide Affiliation of Machinists Native 751, this week, urging the events to “cut price in good religion to achieve a good contract in a well timed method.” 

Additionally they highlighted that Boeing’s CEO acquired compensation totaling greater than $32 million in 2023. Ortberg took over as CEO in August.

Talks between the corporate and the Worldwide Affiliation of Machinists and Aerospace Employees have been going down by means of a federal mediator for the reason that roughly 33,000 staff went on strike final month.

Boeing made a contemporary provide on Sept. 23 that may’ve raised wages by 30% over 4 years. It could’ve additionally doubled a ratification bonus to $6,000 and reinstated an annual bonus. And staff would’ve acquired a 100% match on 401(ok) contributions as much as 8% of pay. The corporate mentioned Tuesday it had withdrawn that supply and that “additional negotiations don’t make sense at this level.”

The union has pushed for a 40% pay hike and restoration of a defined-benefit pension plan.

Boeing has confronted current scrutiny over its security file after a door plug blew out of a 737 Max earlier this 12 months and the corporate was penalized with lots of of hundreds of thousands of {dollars} in fines over lethal crashes in 2018 and 2019.

The aerospace large posted a quarterly lack of greater than $1.4 billion within the second three months of the 12 months and noticed its debt rise to almost $58 billion from $48 billion throughout that point.

On Friday, Boeing mentioned it expects to acknowledge pretax prices of $3 billion associated to the 777X and 767 packages and one other $2 billion tied to protection, house and safety packages. It anticipates third-quarter income of $17.8 billion, with $1.3 billion in unfavourable working money movement. The corporate plans to report full third-quarter monetary outcomes on Oct. 23.

The strike has idled a number of amenities across the Northwest, together with these in Renton, Everett, Auburn and Frederickson in Washington, and Gresham and Portland in Oregon. Due to the strike, work has paused on a number of business airplane fashions, together with the 737 Max, 767 and 777, and a few army plane.

Ortberg final month introduced non permanent furloughs for workers, together with executives and managers, to protect money amid the strike. He mentioned in his be aware on Friday that, with the forthcoming job cuts, the corporate wouldn’t proceed with the subsequent cycle of furloughs.

“The state of our enterprise and our future restoration require robust actions,” he added.