Boeing hopes to raise $35 billion (£26.8 billion) in fresh capital as a costly strike enters its second month.  The plan calls for up to $25 billion in stock and debt sales and agreed to borrow up to $10 billion from a range of central banks.  Boeing said it had needed the measures “to ensure our liquidity.”

Over 30,000 Boeing workers are represented by the union that held a protest yesterday in Seattle.  The company announced that it would cut about 17,000 jobs, and redundancy notices would start being received in mid-November. Talks aimed to end the strike between Boeing and the union collapsed last week after Boeing retracted its final public offer that contained a 30 percent pay hike over four years.

Boeing shares rose by 2.2% based on funding announcements.  However, sources say layoffs are required, and the workers will be provided severance pay.  The company stated it would not initially take the effect of the layoffs on striking workers.  The deliveries of its new 777X planes will also be delayed by a year.

The company is expected to incur a loss in the last three months of operation owing to the strike.  This strike is estimated to cost the company $1bn annually.  Such a cost can weigh Boeing’s books and make its borrowing expensive.  The major credit rating agencies have already warned that the strike will lead to downgrades, and it will be costly for the company to borrow funds for operation.  Boeing is due to release its quarterly results on 23rd October.

An effective strike that has become too important for the U.S. economy said the Biden administration.  On Monday, Acting U.S. Labor Secretary Julie Su met in Seattle with representatives of the International Association of Machinists and Aerospace Workers union (IAM) and Boeing executives.

The top Congressional Democrats from Washington state have encouraged Boeing and the IAM to redouble their efforts to reach an acceptable agreement between the two parties.

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