CNBC's Phil LeBeau joins 'Closing Bell Overtime' with breaking news from Boeing.
Boeing surprised markets late Friday with news that it plans to cut about 10% of its workforce, and warned investors that it is looking at a much bigger third-quarter loss and weaker sales than Wall Street expected.
Boeing plans to cut about 10% of its workforce of roughly 170,000 people. A factory strike is almost a month-old, and tensions between the company and the machinists' union are on the rise.
U.S. planemaker Boeing will cut 17,000 jobs, or 10% of its global workforce, delay first delivery of its 777X jet by a year and expects substantial new losses in its defense business as a month-long strike batters company finances, CEO Kelly Ortberg said on Friday.
Federal watchdog says FAA does not have effective system to oversee Boeing's manufacturing facilities
A federal watchdog on Friday criticized the Federal Aviation Administration's oversight of Boeing airplane production, saying it does not have an effective system to oversee the planemaker's individual manufacturing facilities.
The Boeing strike is growing increasingly ill-tempered as both sides have filed NLRB complaints. Talks resumed on Monday but collapsed the following day.
Boeing has been mired in crisis all year.
“The union violated its duty to bargain in good faith by engaging in regressive bargaining, surface bargaining, misrepresenting deal terms and negotiation status to its members and the public, and failing to bring representatives to the bargaining table with the authority to reach an agreement,” Boeing says.
A federal judge is set to hold a hearing on Friday to consider objections from relatives of people killed in two Boeing 737 MAX crashes to the U.S. planemaker's agreement to plead guilty to conspiring to defraud regulators.
The CEO of Airbus' AIR.PA planemaking business said on Friday the European planemaker was monitoring the wider impact of a strike by Boeing workers, but had not yet seen a direct impact on the number of parts delivered by shared suppliers.
Boeing said late on Thursday it filed an unfair labor practice charge with the National Labor Relations Board against the union that represents about 33,000 striking U.S. West Coast factory workers.