News
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
Impeachment Plot: Akpabio Cautions Nigerians To Disregard Media Report
By Gloria Ikibah
The President of the Senate, Senator Godswill Akpabio, has admonished Nigerians to disregard stories of his planned impeachment, even as he described it as an illusion.
Naijablitznews.com recalled that an online publication, (Name withheld on Wednesday, published a story titled “DSS Takes Over National Assembly Amid Impeachment Speculations Against Senate President Akpabio”, which has since been republished by other media outlets.
The Special Adviser on Media and Publicity to the President of Senate, Hon. Eseme Eyiboh in a statement on Wednesday said the report was a figment of the reporters imagination.
He said: “Distinguished Senator Godswill Akpabio, President of the Senate of the Federal Republic of Nigeria, wishes to state without equivocation that the speculation and misinformation circulating about an alleged impeachment plot against him is the handiwork of fifth columnists who are perpetual merchants of misinformation and purveyors of mischief.
“As a Head of one of the Arms of government, the President of the Senate categorically denies these baseless claims and reaffirms his commitment to transformational leadership of the Senate particularly and effectively collaborates with the other arms of government. There is no crack in the Upper Chamber and no Senator or Caucus is plotting any impeachment against the President of the Senate. Every Senator is focused on raising the bar of Legislative Agenda and Nation building.
“The allegations are nothing but a desperate attempt to create division and discord among the esteemed senators. It’s unfortunate that some individuals would resort to spreading falsehoods to promote the invidious reins of their blackmail enterprise.
“Senator Godswill Akpabio remains focused on the implementation of the 10th Senate’s Legislative Agenda and working tirelessly to address the pressing National issues of growth and prosperity.
“The Senate President will not be distracted by these unfounded rumours and wants to assure the public that his commitment to Nigeria’s progress remains unwavering.
“We therefore urge the public to disregard these baseless claims and instead focus on the meaningful work being done by the Senate to improve the lives of all Nigerians”.
News
BREAKING! FG delegation in meeting with NLC, TUC
By Kayode Sanni-Arewa
The Federal government delegation is currently meeting with the leaders of organised labour at the Presidential Villa in Abuja.
The meeting is centred on the state of the nation, especially the petrol pricing system.
The meeting is taking place at the Secretary to the Office of the Government of the Federation, SGF, George Akume.
At the meeting are Mallam Nuhu Ribadu, the National Security Adviser, NSA; Nkeiruka Onyejeocha, the Labour Minister; and Wale Edun, Minister of Finance and Coordinating Minister of the Economy.
Others are the Information Minister, Petroleum Minister, State Minister of Gas, and representatives of the Nigerian National Petroleum Corporation, NNPC, Limited.
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