Boeing announced on Friday that it will cut 10% of its workforce, or about 17,000 employees, due to a one-month strike that has significantly impacted the company's finances. The company also plans to further delay the delivery of its new wide-body aircraft.

In a letter to employees, Boeing CEO Kelly Ortberg stated that after a strike by approximately 30,000 workers on the U.S. West Coast led to the suspension of production of its 737 MAX, 767, and 777 aircraft, the company must adjust its workforce "to align with our financial reality."

"Over the next few months, we plan to reduce our total workforce by about 10%. The layoffs will involve executives, managers, and employees," Ortberg said in the letter.

Ortberg also stated that Boeing has informed customers that, due to challenges faced by the company during the development process, as well as the suspension of flight tests and ongoing work stoppages, the company currently expects the 777X to be delivered for the first time in 2026, which is about six years later than originally planned.

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Ortberg also said that after fulfilling the remaining orders, the company will cease production of the commercial 767 freighter in 2027.

Boeing will announce its third-quarter results on October 23. The company unexpectedly announced on Friday that it currently expects third-quarter revenue of $17.8 billion, a loss of $9.97 per share, and an operating cash flow of negative $1.3 billion.

This round of layoffs and cost-cutting measures is one of the most eye-catching actions taken by Ortberg since he took office, who has been in charge for just over two months and is tasked with stabilizing Boeing after it has experienced safety and manufacturing crises (including the nearly catastrophic mid-air door latch explosion earlier this year).

The machinists' strike is another challenge faced by Ortberg. Credit rating agencies have warned that Boeing faces the risk of losing its investment-grade rating, and the company has been burning through cash in a year where leadership hopes to turn things around.

The strike began on September 13th, when machinists overwhelmingly rejected the temporary agreement reached between Boeing and the union. On Monday, negotiations between labor and management resumed. On Wednesday, after the latest round of negotiations reached an impasse once again, Boeing withdrew its wage proposal for approximately 33,000 striking workers.

Boeing stated later on Thursday that it had filed an unfair labor practice charge with the National Labor Relations Board (NLRB), accusing the union representing its U.S. West Coast factory workers of not negotiating in good faith.S&P Global Ratings said earlier this week that Boeing is losing over $1 billion per month due to a strike by more than 30,000 mechanics.

Thomas Hayes, chairman of hedge fund Great Hill Capital, said in an email that layoffs could put pressure on Boeing employees to end the strike.

"Strike workers without pay for the time being do not want to become unemployed without pay permanently," Hayes said. "I estimate the strike will end within a week because these workers do not want to be one of the next 17,000 to be laid off."

On Friday, Boeing's stock fell about 1% in after-hours trading. Over the past month, the stock has fallen more than 6%, and year-to-date, the stock has plummeted by as much as 40%.