• Boeing is laying off 17,000 employees, 10% of its global workforce, due to financial struggles.
• The layoffs are part of a revival plan by new CEO, Kelly Ortberg, aiming to restart 737 MAX production.
• The company faced setbacks including a door panel incident, a workers' strike, and two fatal crashes.
• The layoffs reflect broader industry trends, with companies like Volkswagen also planning major cost-saving measures.

In a significant development that has sent shockwaves through the global aerospace industry, Boeing, the US aerospace behemoth, has begun issuing layoff notices to its employees. The move is part of a drastic plan to cut 17,000 jobs, which equates to 10% of its global workforce.

The layoffs are set to commence this week, marking a grim chapter in the company's history. Boeing's decision to reduce its workforce is a direct response to the financial challenges it has been grappling with.

Boeing's Financial Reality and Workforce Adjustment

As previously announced, we are adjusting our workforce levels to align with our financial reality and a more focused set of priorities, the company stated. Despite the impending layoffs, Boeing has pledged to support its employees during this challenging period.

The layoffs come against the backdrop of a revival plan put in place by Boeing's new CEO, Kelly Ortberg. The plan aims to restart the production of the 737 MAX, which had been halted due to a prolonged strike by more than 33,000 US West Coast workers.

The 737 MAX is a significant contributor to Boeing's revenue, which raised over $24 billion last month to keep its operations afloat and maintain its investment grade rating. However, Boeing's journey has been fraught with challenges. Earlier this year, the company faced a major setback when a door panel blew off a brand-new 737 MAX jet mid-flight. This incident led to regulatory restrictions being imposed on the company, impacting its production.

Challenges and the Road to Recovery

The company also faced a long-drawn strike by its US workers, which brought production to a standstill. The company's reputation took a hit following two fatal crashes due to a software glitch in the 737 MAX and the coronavirus pandemic. In response, Boeing hired a new CEO to introduce changes, restore the company's image, and revive production.

The company's US West Coast factory workers have now accepted a new contract offer, ending a bitter seven-week strike that had halted most jet production and deepened the financial crisis at the troubled aircraft manufacturer. The layoffs are not an isolated incident but part of a broader trend in the industry.

For instance, Volkswagen, another major player in the manufacturing sector, is also reportedly planning to achieve the majority of its billion-euro savings drive through pay cuts. This move is expected to bring in almost 800 million euros annually.