Boeing is set to post a staggering $9.97 per share loss for the third quarter of its current fiscal year as it grapples with $5 billion in program charges and disruptions caused by labor strikes, the company said on Friday in a preliminary report.
The aerospace giant said it expects revenues of $17.8 billion. Still, its bottom line has been hit by delays to key programs such as the 777X and the KC-46A tanker, along with a costly work stoppage by the International Association of Machinists (IAM). Moreover, the air carrier is delaying the delivery of the 777-9 to 2026 and the 777-8 freighter to 2028, resulting in a pre-tax earnings charge of $2.6 billion. Finally, Boeing also announced that it will cut 17,000 jobs or 10% of its worldwide workforce.
"While our business is facing near-term challenges, we are making important strategic decisions for our future and have a clear view on the work we must do to restore our company," said Kelly Ortberg, Boeing president and chief executive officer.
