New York: Aviation giant Boeing plans to cut its workforce by 10 percent, laying off about 17,000 workers. Boeing announced the job cuts on Friday. The company said the decision was taken after it suffered a big loss in the third quarter in the wake of a strike in the Seattle area.

Boeing will also stop production of cargo planes

CEO Kelly Ortberg issued a release to employees on Friday in which he said that after completing current orders, Boeing will also stop producing commercial 767 freighter planes in 2027. He said the company is facing mounting losses and a machinists' strike that has halted operations at aircraft factories for five weeks.

Chief Executive Kelly Ortberg said that aviation giant Boeing is going through a lot of financial crisis these days, and to correct it, the level of workforce will have to be restored. He said that the reduction of 17,000 posts globally will include officers, managers and employees.

The company said a nearly month-long strike by 33,000 workers had delayed aircraft production, adding to the company's problems. Boeing staff from the International Association of Machinists and Aerospace Workers walked off the job on Sept. 13 after overwhelmingly rejecting a contract offer.

Company facing challenges- CEO

"While our business faces near-term challenges, we are making important strategic decisions for our future and doing the work we must do to restore our company," Ortberg said in a press release. These decisive actions, along with major structural changes to our business, are necessary to remain competitive over the long term.

Boeing shares fell 1.7 percent

As a result of the strike, Boeing said it is pushing back the first delivery of the 777X from 2025 to 2026. The company plans to stop producing the 767 freighter in 2027 after production on existing orders is complete. Boeing shares fell 1.7 percent after the company announced the cuts.