Boeing Factory workers assemble Boeing 787 airliners at the Boeing factory in Everett. (Vince Streano/Getty Images)
Boeing said Friday it would slash about 17,000 employees, roughly 10% of its workforce, and that it would end production of a cargo airplane made in Washington.
The move comes as aircraft machinists in the Puget Sound region and other parts of the West Coast have been on strike for nearly a month after rejecting a contract offer from the company in September. Contract negotiations stalled earlier this week and manufacturing remains halted at Boeing sites around the region.
Before the strike, the company was already facing financial losses and mounting debt.
“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,” Boeing President and CEO Kelly Ortberg said in a message to employees.
“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,” he added.