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Boeing announces layoffs amid restructuring efforts

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Boeing announces layoffs amid restructuring efforts
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Boeing has announced layoffs affecting 692 employees in its Defense, Space & Security division. This decision aligns with Boeing's broader strategy to reduce its global workforce by 10%, equivalent to approximately 17,000 jobs. The company is navigating challenges in both the aviation and space sectors, including difficulties related to the Boeing 737 MAX and competition from new market entrants like SpaceX.

According to Reuters, these layoffs are part of a larger restructuring effort under the leadership of new CEO Robert Kelly Ortberg, who aims to refocus Boeing on its core business areas. "Including these layoffs, the company has issued 60-day notices to at least 3,100 U.S. workers in Washington, Oregon, South Carolina and Missouri," Reuters reported. Of these notices, nearly 2,200 were sent to workers in Washington and another 220 in South Carolina.

Despite these reductions, Boeing remains committed to its defense sector projects such as the F-15EX fighter jet and KC-46 Pegasus refueling tanker. In contrast, the space sector poses significant financial challenges for Boeing. The Starliner project has encountered $1.8 billion in cost overruns and operational setbacks compared to competitors like SpaceX's Dragon capsule.

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Boeing is reportedly considering divesting certain assets within its portfolio. "The big defense contractor is already in talks to sell its rocket-launching joint venture with Lockheed Martin," Reuters noted regarding United Launch Alliance.

Further complicating matters for Boeing are delays with the Air Force One replacements and issues surrounding the Space Launch System (SLS). The SLS program has faced budget overruns and scheduling delays but remains central to NASA's Artemis Moon landing initiative.

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