Boeing on Friday mentioned it is reducing 10% of its workforce, or about 17,000 workers.

In a memo on Friday, CEO Kelly Ortberg introduced the layoffs, writing that the aerospace big should make “powerful selections” to remain aggressive. Ortberg added that the corporate can be delaying its program to develop the 777X airplane and halting manufacturing of the 767 plane after it delivers the remaining 767 planes which have been ordered by prospects. 

The layoffs and manufacturing adjustments come amid a labor dispute at Boeing, with 33,000 machinists occurring strike in September after failing to agree on a contract. The aerospace big’s funds and popularity have additionally taken successful this 12 months on account of manufacturing issues and a number of federal investigations, following a mid-air panel blowout in January. 

“Our enterprise is in a troublesome place, and it’s onerous to overstate the challenges we face collectively,” mentioned Ortberg within the memo. “Past navigating our present surroundings, restoring our firm requires powerful selections and we should make structural adjustments to make sure we are able to keep aggressive and ship for our prospects over the long run.”

Ortberg, the previous head of aerospace firm Rockwell Collins, joined Boeing as CEO in August, changing outgoing CEO Dave Calhoun within the wake of elevated regulatory scrutiny sparked by manufacturing issues on the storied firm.

In his Friday memo, Ortberg mentioned the layoffs will embody executives, managers and workers, and happen throughout the “coming months.”