Boeing announced Friday that it will lay off about 10% of its workforce, equating to around 17,000 employees.

The aerospace giant grapples with escalating losses and an ongoing machinist strike that has halted aircraft production for more than a month.

The company is projected to incur a third-quarter loss of US$9.97 per share and expects total pretax charges of US$5 billion.

This includes US$3 billion from its commercial airplane division and US$2 billion from its defense unit.

Furthermore, Boeing reported an operational cash outflow of US$1.3 billion for the quarter, highlighting the considerable financial strain it faces.

A critical factor in Boeing’s troubles is the strike of over 30,000 machinists, which began on 13 September after union members rejected a tentative agreement.

The strike is reported to cost Boeing more than US$1 billion monthly, severely hindering its production schedule.

Compounding these issues, Boeing is delaying the launch of its still-uncertified 777X wide-body plane until 2026. This is six years beyond its initial schedule due to structural damage discovered in test flights.