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Boeing To Cut 10% Workforce As It Sees Big Q3 Loss
By Kayode Sanni-Arewa
Boeing To Cut 10% Workforce As It Sees Big Q3 Loss
The company plans to cease production of the 767 Freighter in 2027 once it completes production on current orders.
Boeing announced that it plans to cut 10 per cent of its workforce as it projected a large third-quarter loss amid a machinist strike in the Seattle region.
The aviation giant must “reset our workforce levels to align with our financial reality,” Chief Executive Kelly Ortberg said on Friday, adding that the cuts of 17,000 positions globally “will include executives, managers and employees.”
The company announced a series of belt-tightening measures and production delays as the nearly monthlong strike of 33,000 workers has added to the company’s litany of problems.
Boeing staff with the International Association of Machinists (IAM) and Aerospace Workers walked off the job on September 13 after overwhelmingly rejecting a contract offer.
IAM officials did not immediately respond to a request for comment from AFP.
Boeing, which has also faced significant scrutiny over commercial aviation safety lapses and stumbles in its Starliner space program, said the IAM strike contributed to $3 billion in pre-tax charges to its commercial aviation results in the third quarter, part of an anticipated loss of $9.97 per share.
“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,” Ortberg said in a press release.
“These decisive actions, along with key structural changes to our business, are necessary to remain competitive over the long term.”
Details of the cuts would come next week, he said.
As a result of the strike, Boeing said it is pushing back first delivery of the 777X to 2026 from 2025. The much-delayed jet was originally supposed to enter service in January 2020.
The company plans to cease production of the 767 Freighter in 2027 once it completes production on current orders.
Ortberg also vowed to take “additional oversight” of Boeing’s troubled defense and space businesses, which will experience “substantial new losses” in the third quarter, he said in the message to employees.
– Criminal settlement questioned –
Ortberg joined Boeing in August after a leadership shakeup initiated in the wake of a January incident on Alaska Airlines in which a window blew out mid-flight, necessitating an emergency landing on a 737 MAX, the aircraft involved in two fatal crashes in 2018 and 2019.
That led to the Federal Aviation Administration tightening oversight of Boeing’s production processes, capping the company’s output. Production on the MAX is now halted due to the IAM strike.
On Friday, a judge in Texas heard arguments on whether to approve a US Department of Justice criminal settlement on the MAX. Family members of MAX victims from the two crashes argued in court against the settlement, asserting that Boeing and former executives should be criminally prosecuted in a public trial.
The IAM strike, meanwhile, has halted activity at two Seattle-area assembly plants.
The striking workers are seeking hefty wage hikes and a reinstatement of their pension, complaining of more than a decade of near-flat wages amid inflation.
Ratings agency S&P estimated this week that the strike was costing Boeing $1 billion per month.
On Tuesday, following two days of unsuccessful negotiations, Boeing suspended the talks, accusing the union of making unreasonable demands and withdrew its offer. Boeing’s most recent offer included a 30 per cent wage hike.
IAM’s negotiating committee said late Friday that Boeing’s withdrawal of its offer at the last talks “will only make it harder to reach an agreement.”
“The fact they are complaining about our proposals shows their desperation and only proves to our members that we are fighting for them,” IAM said in a statement on X, without mentioning Boeing’s plan to slash 17,000 jobs.
Shares of Boeing fell about 1 percent in after-hours trading.
AFP
News
Army acquires 43 drones, wings 46 Turkey-trained personnel
The Federal Government has bolstered the Nigerian Army’s operational capacity with the acquisition of 43 Bayraktar TB2 drones, primarily for deployment in the North-West theatre of operations.
The Commander of the Nigerian Army Space Command, Brig. Gen. U.G. Ogeleka, disclosed this on Tuesday during the winging ceremony of 46 personnel trained in the operation and maintenance of the drones.
The initiative, codenamed Project Guardian, aims to strengthen military operations against insurgency and other security challenges in the region.
“Between May and September 2022, a team of 35 officers and 11 soldiers from the Nigerian Army’s routinely piloted aircraft system regiments underwent specialised training in Turkey on the operation and maintenance of the Bayraktar TB2 drones,” Ogeleka said. “The training crew included multi-piloted aircraft pilots, mission operators, avionics, and mechanical engineers and technicians.”
Out of the 46 trained personnel, 14 are multi-piloted aircraft pilots, seven are mission operators, and 23 are engineers and technicians.
Ogeleka presented 22 of the trained personnel for the winging ceremony, noting that the others are actively engaged in operational duties.
The Chief of Army Staff, Lt. Gen. Olufemi Oluyede, praised the acquisition of the drones and the training of personnel as significant steps toward enhancing the army’s professionalism and combat readiness.
“The winging of these 22 officers and soldiers as pilots and certified maintenance engineers is a morale booster for others in service,” Oluyede said. “It confirms their readiness to operate and maintain the Turkish Bayraktar TB2 drones in our inventory.”
Oluyede further revealed plans to procure additional unmanned aerial systems in the coming year to strengthen military operations across all theatres in the country.
The drones will play a critical role in addressing security challenges in the North-West, a region plagued by banditry and insurgency.
Their advanced surveillance and strike capabilities are expected to significantly enhance the Nigerian Army’s operational effectiveness.
This development underscores the government’s commitment to leveraging technology to improve national security and highlights the Nigerian Army’s drive to modernize its arsenal and build capacity within its ranks.
With more unmanned aerial systems set for acquisition, the military’s ability to conduct precise, real-time surveillance and combat operations is poised for substantial improvement.
News
Ondo Assembly mulls 10-year jail term for land grabbers
The Ondo State House of Assembly is considering a bill that proposes harsh penalties for land grabbers, including up to 10 years imprisonment for forceful entry or illegal takeover of properties.
Governor Lucky Aiyedatiwa has further reinforced the fight against land grabbing by signing an Executive Order to prohibit such activities.
The order aims to end forceful entry, illegal occupation of landed properties, and fraudulent or violent conduct related to land in the state.
To strengthen enforcement, the governor has established a Task Force to protect property rights, uphold the rule of law, and ensure a secure environment for property owners and residents.
The proposed bill also includes severe penalties of up to 21 years imprisonment for selling family land without the consent of the family head or secretary.
Hon Moyinolorun Ogunwumiju, the lawmaker representing Ondo West Constituency 1, who sponsored the bill, spoke during a public hearing on the bill
Hon Ogunwumiju assured stakeholders that the bill would improve land administration, protect landowners, attract investors, and foster peace and development in the state.
He explained that the bill sought to regulate land dealings, protect landowners and buyers, penalise encroachers, and criminalise unregistered agents.
Ogunwumiju said the bill proposed penalties of up to 10 years’ imprisonment for forceful entry or takeover of properties and up to 21 years for selling family land without the consent of the family head or secretary.
Speaker of the Assembly, Hon Olamide Oladiji, urged committee members and stakeholders to ensure the bill served the interests of the people.
He said the bill would maintain order in the state and impose necessary sanctions on offenders.
“Land grabbers pose a significant threat to property acquisition. Their activities ranging from trespassing, forceful occupation, and illegal sales of properties to multiple buyers must be confronted decisively.”
Majority Leader and Chairman of the House Committee on Rules and Business, Oluwole Ogunmolasuyi, said the bill, would benefit the society at large
Ondo Commissioner for Justice and Attorney General, Kayode Ajulo said the bill would enhance land administration and complement the executive order signed by Governor Aiyedatiwa.
Stakeholders including traditional rulers called for full implementation of the bill when signed into law.
News
FG earmarks N250bn for Lagos-Abuja rail project in 2025 budget
The federal government has made an allocation of N250 billion in the 2025 budget for the Lagos–Abuja mass transit rail project.
This budgetary investment is part of a broader plan to revitalize Nigeria’s infrastructure and stimulate economic growth.
The government’s focus on infrastructure development is rooted in the belief that it is a cornerstone of long-term economic planning.
By investing in critical infrastructure such as roads, railways, energy, healthcare, and education, the administration aims to create a conducive environment for both domestic and foreign investment.
The Lagos-Abuja rail project, in particular, is expected to have a transformative impact on the Nigerian economy.
By improving transportation connectivity between two major economic hubs, the project will facilitate the movement of goods and people, reduce logistics costs, and stimulate economic activity.
Additionally, the project is expected to create numerous jobs, both directly and indirectly, contributing to the country’s overall employment rate.
The government’s infrastructure investments are also aimed at addressing regional disparities.
By connecting different parts of the country through improved transportation networks, the administration hopes to stimulate economic growth in underserved regions, reduce poverty, and promote equitable development.
The 2025 budget signals the government’s commitment to transforming Nigeria’s infrastructure landscape.
By investing in critical projects like the Lagos-Abuja rail line, the administration aims to lay the foundation for a more prosperous and connected Nigeria.
However, the success of these initiatives will depend on effective planning, efficient implementation, and transparent governance.
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