06:48 AM EDT, 10/14/2024 (MT Newswires) -- Boeing ( BA ) shares were down early Monday as the troubled plane maker disclosed plans last week to cut jobs and announced a preliminary third-quarter loss wider than Wall Street's current estimates.

The company aims to reduce its total workforce by about 10% over the coming months, including executives, managers and employees, Chief Executive Kelly Ortberg said in a Friday message to employees. The move is intended to align Boeing's ( BA ) staffing levels with its "financial reality," while the group will no longer proceed with its next cycle of furloughs, according to Ortberg.

"Our business is in a difficult position, and it is hard to overstate the challenges we face together," the CEO said in a statement. "Beyond navigating our current environment, restoring our company requires tough decisions and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term."

Boeing's ( BA ) stock declined 1.9% in Monday's premarket activity.

Last week, the manufacturer of the 787 Dreamliner aircraft withdrew its latest pay offer to the striking International Association of Machinists and Aerospace Workers union, which represents 33,000 of its employees, following a breakdown in negotiations.

Boeing ( BA ) now expects first delivery of its 777X program in 2026 due to challenges faced in development and ongoing work stoppages, Ortberg said. The company also plans to deliver the remaining 767 Freighters ordered by its customers and then conclude production of the commercial program in 2027.

"We need to be clear-eyed about the work we face and realistic about the time it will take to achieve key milestones on the path to recovery," according to Ortberg.

In a separate statement, the company said it expects to report a per-share loss of $9.97 in the third quarter amid pre-tax charges for certain programs across its commercial airplanes and defense, space and security segments and the workers strike. The current consensus on Capital IQ is for a GAAP loss of $2.06 a share.

Revenue is pegged at $17.8 billion versus the Street's view for $18.17 billion. Boeing ( BA ) anticipates operating cash flow of negative $1.3 billion, while cash and investments in marketable securities amounted to $10.5 billion at the end of the September quarter.

Within the commercial airplanes segment, the plane maker expects to record a pre-tax earnings charge of $3 billion on the 777X and 767 programs. The division is projected to report revenue of $7.4 billion in the third quarter. Defense, space and security is anticipated to log pre-tax earnings charges of $2 billion and post revenue of $5.5 billion.

Price: 148.30, Change: -2.72, Percent Change: -1.80