Washington. Boeing is set to lay off around 10 percent of its workforce, approximately 17,000 employees, as the company struggles with financial losses and production delays caused by a strike of factory workers. The strike has halted production of Boeing’s best-selling planes, including the 737 Max.

In a memo to employees on Friday, new CEO Kelly Ortberg announced that the layoffs would affect executives, managers, and other employees. Boeing employs roughly 170,000 people globally, with many working at its manufacturing plants in Washington and South Carolina.

Ortberg said that rolling temporary furloughs would be suspended in light of the layoffs. The company will also delay the release of its new 777X aircraft to 2026, from its previous target of 2025, and plans to cease production of the cargo version of its 767 jet in 2027 after completing current orders.

Since 2019, Boeing has lost over $25 billion, and the ongoing strike is further straining the company’s finances. About 33,000 union machinists have been on strike since Sept. 14, and recent negotiations have failed to produce an agreement. Boeing has filed an unfair labor practices complaint against the International Association of Machinists and Aerospace Workers.

Boeing also released a preliminary report on its third-quarter financial performance, which revealed a cash burn of $1.3 billion and a loss of $9.97 per share, far exceeding the $1.61 per share loss that analysts had expected. The losses included significant charges: $2.6 billion related to the 777X delays, $400 million for the 767, and $2 billion tied to defense and space programs such as the new Air Force One jets and NASA’s space capsule.

As of Sept. 30, Boeing held $10.5 billion in cash and marketable securities. Full third-quarter results will be released on October 23.

The strike, which has halted production of the 737 Max, 777, and 767 models, has had a significant impact on Boeing’s cash flow. The company typically receives more than half the payment for aircraft upon delivery, but the strike has stalled that process. However, Boeing continues to produce its 787 model at a non-union facility in South Carolina.

Ortberg, who became Boeing’s third CEO in less than five years in August, acknowledged the company’s challenges. "Our business is in a difficult position, and it is hard to overstate the challenges we face together," he told employees. Ortberg emphasized that structural changes are necessary to ensure Boeing remains competitive and meets customer demands over the long term.

Boeing is facing additional scrutiny from the Federal Aviation Administration (FAA) after an incident involving a panel blowing out of a 737 Max during an Alaska Airlines flight earlier this year. Boeing has also agreed to plead guilty to conspiracy charges related to the Max crashes, which claimed 346 lives.

In another setback, NASA recently determined that a Boeing spacecraft was not safe enough to return two astronauts from the International Space Station, adding to the company’s mounting challenges.