Airplane giant Boeing will cut 10% of its workforce and cut production in the coming months due to major financial problems and an ongoing strike, the company said Friday.

Boeing, which struggled with a series of serious aircraft failures in January, including door failure on an Alaskan Airlines flight, recorded huge losses in the third quarter of 2024.

“Our company is in a difficult situation, and the challenges we face together are difficult to overstate,” Boeing CEO Kelly Ortberg said in a memo to employees Friday obtained by CNN. “Rebuilding our business will require difficult decisions and we will need to make structural changes to ensure we remain competitive.”

Ortberg, who took office as CEO in August Dave Calhoun The company, left under intense regulatory pressure, did not provide the exact number of layoffs but indicated that workers at all levels of the company could expect details next week.

More than 33,000 Boeing workers voted overwhelmingly in favor authorize a strike last month. Almost 20% of Boeing’s workforce suddenly found itself on the picket line. Your union, the International Association of Machinists and Aerospace Workers, Stagnant wages, safety issues and unfair labor practices were cited as reasons for the work stoppage.

Talks between Boeing and the IAM reportedly collapsed earlier this week, and Boeing withdrew its latest offer to the union. The work stoppage was cited in a news release as the reason for layoffs, delays and cessation of production of several Boeing aircraft.

Representatives of other Boeing employee unions were disappointed by the layoff news and the fact that the company blamed striking workers rather than management missteps.

“Instead of resolving the IAM strike and focusing the company’s resources on restoring the trust of regulators and customers, Boeing’s leadership has chosen to damage every aspect of the company,” said Ray Goforth, director of the Society of Professional Engineering Employees in Aerospace, in a statement to the Seattle Times newspaper.