Boeing, one of the world’s largest aerospace manufacturers, is facing a severe crisis. The company announced on Friday that it will lay off 17,000 employees—roughly 10% of its workforce.

This decision comes amid a prolonged strike, production delays, and ongoing safety concerns with its aircraft. Kelly Ortberg, Boeing’s CEO since August, delivered the news, stating, “Our business is in a difficult position, and it is hard to overstate the challenges we face together.

Beyond navigating our current environment, restoring our company requires tough decisions, and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term.”

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Boeing has been struggling financially, with the last reported profit in 2018. The company’s largest union, with 33,000 members, has been on strike for nearly a month after rejecting a labor deal. The ongoing walkout is reportedly costing Boeing around a billion dollars each month as negotiations remain at a standstill.

Compounding these issues, Boeing’s much-anticipated boeing 777x wide-body plane is now six years behind schedule, with deliveries postponed until 2026. This follows the discovery of structural damage during flight tests. Boeing also announced it will stop manufacturing its commercial 767 freighters after fulfilling its remaining orders by 2027.

Financially, the company expects to report a significant third-quarter loss—nearly $10 per share—and a total cash outflow of $1.3 billion. boeing new aircraft commercial airplane unit faces a $3 billion pretax charge, while its defense business will absorb an additional $2 billion hit.

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The strike has severely impacted production at key boeing facilities, particularly in Seattle, where half of the company’s nearly 150,000 employees work. Since 2019, Boeing has lost approximately $25 billion.

Ortberg was brought in over the summer to help the company regain public trust following safety concerns, especially surrounding the 737 Max line, which was involved in two deadly crashes. Earlier this year, a separate incident involving a panel popping off a 737 Max mid-flight reignited concerns. A Federal Aviation Administration investigation following the event found that Boeing had failed 33 out of 89 product audits.