Boeing has announced 17,000 job cuts and a loss of $5 billion.

Reuters reported that the situation at the company continues to deteriorate due to the month-long strike.

In his address to employees, Boeing CEO Kelly Ortberg said that the company had been forced to reduce its workforce to meet the financial realities.

A strike by 33,000 workers on the US West Coast has halted production of some new aircraft.

“We are reviewing our staff levels in line with the financial reality and focusing on our priorities. In the coming months, we plan to reduce the number of employees by about 10%. This reduction applies to both managers and employees,” Ortberg stated in a press release.

Boeing shares fell 1.7% in trading after the market close.

Boeing recorded losses of $5 billion in its defense and commercial divisions. On September 20, Boeing fired the head of its troubled Defense, Space and Security division, Ted Colbert.

Reaching a deal to end the strike is critical for Boeing, as the company filed an unfair labor complaint on Wednesday, accusing the workers’ union of bad faith negotiations.

The strike is costing Boeing $1 billion a month, and the company risks losing its prestigious investment-grade credit rating.

Boeing Defense, Space & Security division develops and manufactures a wide range of defense products used around the world.

For example, in the third quarter, Boeing delivered three F-15s, and since the beginning of the year, 10 aircraft have been delivered. As for the F/A-18, it is told about one and five aircraft, respectively, and one T-7A training aircraft. It is possible that the strikes will affect the production of the new combat aircraft.

The United States has recently ordered the new batches of small-diameter GBU-39/B bombs for its own Air Force and Ukraine. These bombs are also manufactured by Boeing Defense, Space & Security division.