Boeing Company announced that it plans to reduce its global workforce by approximately 10%, equating to around 17,000 positions, due to ongoing financial difficulties exacerbated by a labor strike.

CEO Kelly Ortberg communicated in a memo the need for structural changes to remain competitive.

The strike by the International Association of Machinists and Aerospace Workers has significantly disrupted production; 33,000 workers have been striking for a month.

Consequently, the plane maker's shares have fallen by about 42% this year.

Boeing is also postponing the introduction of its 777X jetliner, forecasting third-quarter revenue of $17.8 billion, lower than Wall Street's expectations of $18.6 billion.

The company foresees about $5 billion in pretax charges in its commercial airplanes and defense businesses, attributed in part to delays in the 777X widebody jet deliveries to 2026 and the closure of the 767 program by 2027.