More than 4,000 Boeing employees in the UK face uncertainty, as the US aerospace giant prepares to cut 17,000 jobs globally, nearly 10% of its workforce.
Boeing’s UK operations, including its only European manufacturing facility in Sheffield, may be affected by significant job cuts, as the company faces financial challenges.
Boeing’s UK workforce is spread across 30 sites, about half of which works on defense contracts, delivering helicopters such as the AH-64E Apache and aircraft such as the C-17 Globemaster. The company’s Sheffield site employs 125 people who produce wing components for Boeing 737 aircraft, while Boeing Global Services operates maintenance facilities at Gatwick Airport.
Boeing CEO Kelly Ortberg announced the job cuts on Friday, citing ongoing financial difficulties exacerbated by production delays and worker strikes. Regulators also slowed down Boeing’s manufacturing after a door panel accident on a 737 MAX earlier this year. The crisis worsened after 33,000 workers in Seattle went on strike over wage disputes, causing further production halts.
“Recovering our company will require difficult decisions, and we will have to make structural changes to ensure we can remain competitive,” Ortberg said. Along with the job cuts, Boeing has delayed the launch of its 777X until 2026 and will halt production of 767 freighters by 2027.
While the specific impact on UK jobs remains unclear, sources suggest that job losses may be skewed towards the US. In theory, if Boeing applied the cuts proportionately, nearly 400 UK workers could be affected. However, Boeing has not formally informed its UK employees how they will be affected.
The financial pressures on Boeing have led to mounting pressure from airline customers, including Ryanair, which has been forced to cut its forecasts for passengers due to delayed aircraft deliveries. Credit rating agency Standard & Poor’s has placed Boeing on “negative” watch, raising the possibility that its debt rating will be downgraded to junk status.