Boeing said Friday it would cut 10% of its workforce, or about 17,000 employees.

CEO Kelly Ortberg announced the layoffs in a memo Friday, writing that the aerospace giant must make “tough decisions” to remain competitive. Ortberg added that the company is also delaying its 777X aircraft development program and stopping production of the 767 aircraft after it delivers the remaining 767 aircraft ordered by customers.

The layoffs and production changes come amid a labor dispute at Boeing involving 33,000 machinists strike last month after failing to agree on a contract. The aerospace giant’s finances and reputation have also taken a hit this year due to production problems and multiple federal investigations following an incident Panel blowout in January.

“Our company is in a difficult situation and the challenges we face together can hardly be overstated,” Ortberg said in the memo. “Beyond managing our current environment, recovering our business requires difficult decisions and we must make structural changes to ensure we remain competitive and able to deliver to our customers over the long term.”

Ortberg, the former head of aerospace company Rockwell Collins, joined Boeing as CEO in August, replacing outgoing CEO Dave Calhoun amid heightened regulatory scrutiny triggered by production problems at the venerable company.

In his Friday memo, Ortberg said the layoffs include executives, managers and employees and will occur within the “coming months.”