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Boeing to cut 17,000 jobs and delay 777X jet as revenues fall short

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Boeing to cut 17,000 jobs and delay 777X jet as revenues fall short

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Boeing will cut about 17,000 jobs and delay the first delivery of its 777X jet as the plane maker confronts deepening losses and the effects of a weekslong strike by its largest labour union.

Chief executive Kelly Ortberg announced the cuts, equivalent to 10 per cent of its workforce, in a message to staff on Friday. “Our business is in a difficult position, and it is hard to overstate the challenges we face together,” he said.

Financial troubles have escalated at Boeing since the start of the year, when a door panel blew off one of its 737 Max jets on a passenger flight. Regulators demanded a slowdown in manufacturing to fix quality problems, which reduced the amount of cash flowing into the company.

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Last month, 33,000 workers walked out of Boeing plants in Washington state after members of the machinists’ union overwhelmingly rejected a new contract. The work stoppage halted production of the company’s 767 and 777 planes, further cutting revenue, putting strain on its suppliers and customers.

The debt rating agency S&P this week warned of a possible downgrade of Boeing’s bonds to junk status. Analysts expect the company to look to raise at least $10bn in new equity to shore up its financial position.

In a separate statement after the market closed on Friday, Boeing warned investors that its third-quarter results, which are due on October 23, would “recognise impacts” related to the strike as well as charges in both its commercial and defence divisions.

The company said it had $10.5bn in cash and marketable securities at the end of September after burning through $1.3bn in cash during the quarter. Losses for the period totalled nearly $10 per share, in part reflecting pre-tax charges of $5bn in the quarter, including $3bn on the 777X and 767 commercial plane programmes and $2bn for its defence, space and security business.

Boeing said revenues for the quarter would come in at $17.8bn, a figure that would fall short of analysts’ expectations by about 3 per cent.

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Ortberg, a former CEO of avionics manufacturer Rockwell Collins, was appointed in late July to replace Dave Calhoun. He arrived soon after Boeing had pleaded guilty to misleading US regulators about a flight control system that caused two fatal crashes of the 737 Max in 2018 and 2019.

Boeing continues to face federal investigations over the 737 Max accident on an Alaska Airlines flight in January, which killed no passengers but led to new questions about quality control inside the company.

The machinists strike came after union members turned down a 30 per cent pay increase offered by the company. In an attempt to conserve cash, Boeing had begun stopping purchase orders with suppliers, freezing new hiring and furloughing tens of thousands of employees.

Ortberg said that, because of the planned job cuts, the company would not proceed with the next round of furloughs. The International Association of Machinists and Aerospace Workers union did not immediately respond to a request for comment.

Boeing needed “to reset our workforce levels to align with our financial reality and to a more focused set of priorities”, he said, adding that the cuts would include executives, managers and employees. Boeing had 171,000 employees at the end of 2023.

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Ortberg announced that first delivery of Boeing’s 777X jet — which was first due to enter commercial service in 2020 — would be delayed again, from 2025 to 2026.

Boeing shares were down about 1.7 per cent in after-hours trading.

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Supreme Court blocks redrawing of New York congressional map, dealing a win for GOP

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Supreme Court blocks redrawing of New York congressional map, dealing a win for GOP

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Win McNamee/Getty Images

The Supreme Court on Monday intervened in New York’s redistricting process, blocking a lower court decision that would likely have flipped a Republican congressional district into a Democratic district.    
  
At issue is the midterm redrawing of New York’s 11th congressional district, including Staten Island and a small part of Brooklyn. The district is currently held by a Republican, but on Jan. 21, a state Supreme Court judge ruled that the current district dilutes the power of Black and Latino voters in violation of the state constitution.  
  
GOP Rep. Nicole Malliotakis, who represents the district, and the Republican co-chair of the state Board of Elections promptly appealed to the U.S. Supreme Court, asking the justices to block the redrawing as an unconstitutional “racial gerrymander.” New York’s congressional election cycle was set to officially begin Feb. 24, the opening day for candidates to seek placement on the ballot.  
  
As in this year’s prior mid-decade redistricting fights — in Texas and California — the Trump administration backed the Republicans.   
 
Voters and the State of New York contended it’s too soon for the Supreme Court to wade into this dispute. New York’s highest state court has not issued a final judgment, so the voters asserted that if the Supreme Court grants relief now “future stay applicants will see little purpose in waiting for state court rulings before coming to this Court” and “be rewarded for such gamesmanship.” The state argues this is an issue for “New York courts, not federal courts” to resolve, and there is sufficient time for the dispute to be resolved on the merits. 
  
The court majority explained the decision to intervene in 101 words, which the three dissenting liberal justices  summarized as “Rules for thee, but not for me.” 
 
The unsigned majority order does not explain the Court’s rationale. It says only how long the stay will last, until the case moves through the New York State appeals courts. If, however, the losing party petitions and the court agrees to hear the challenge, the stay extends until the final opinion is announced. 
 
Dissenting from the decision were Justices Sonia Sotomayor, Elena Kagan, and Ketanji Brown Jackson. Writing for the three, Sotomayor  said that  if nonfinal decisions of a state trial court can be brought to highest court, “then every decision from any court is now fair game.” More immediately, she noted, “By granting these applications, the Court thrusts itself into the middle of every election-law dispute around the country, even as many States redraw their congressional maps ahead of the 2026 election.” 

Monday’s Supreme Court action deviates from the court’s hands-off pattern in these mid-term redistricting fights this year. In two previous cases — from Texas and California — the court refused to intervene, allowing newly drawn maps to stay in effect.  
  
Requests for Supreme Court intervention on redistricting issues has been a recurring theme this term, a trend that is likely to grow.  Earlier last month  the high court allowed California to use a voter-approved, Democratic-friendly map.  California’s redistricting came in response to a GOP-friendly redistricting plan in Texas that the Supreme Court also permitted to move forward. These redistricting efforts are expected to offset one another.     
   
But the high court itself has yet to rule on a challenge to Louisiana’s voting map, which was drawn by the state legislature after the decennial census in order to create a second majority-Black district.  Since the drawing of that second majority-black district, the state has backed away from that map, hoping to return to a plan that provides for only one majority-minority district.    
     
The Supreme Court’s consideration of the Louisiana case has stretched across two terms. The justices failed to resolve the case last term and chose to order a second round of arguments this term adding a new question: Does the state’s intentional creation of a second majority-minority district violate the constitution’s Fourteenth and Fifteenth Amendments’ guarantee of the right to vote and the authority of Congress to enforce that mandate?    
Following the addition of the new question, the state of Louisiana flipped positions to oppose the map it had just drawn and defended in court. Whether the Supreme Court follows suit remains to be seen. But the tone of the October argument suggested that the court’s conservative supermajority is likely to continue undercutting the 1965 Voting Rights Act.   

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Map: Earthquake Shakes Central California

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Map: Earthquake Shakes Central California

Note: Map shows the area with a shake intensity of 3 or greater, which U.S.G.S. defines as “weak,” though the earthquake may be felt outside the areas shown.  All times on the map are Pacific time. The New York Times

A minor earthquake with a preliminary magnitude of 3.5 struck in Central California on Monday, according to the United States Geological Survey.

The temblor happened at 7:17 a.m. Pacific time about 6 miles northwest of Pinnacles, Calif., data from the agency shows.

As seismologists review available data, they may revise the earthquake’s reported magnitude. Additional information collected about the earthquake may also prompt U.S.G.S. scientists to update the shake-severity map.

Source: United States Geological Survey | Notes: Shaking categories are based on the Modified Mercalli Intensity scale. When aftershock data is available, the corresponding maps and charts include earthquakes within 100 miles and seven days of the initial quake. All times above are Pacific time. Shake data is as of Monday, March 2 at 10:20 a.m. Eastern. Aftershocks data is as of Monday, March 2 at 11:18 a.m. Eastern.

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US says Kuwait accidentally shot down 3 American jets

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US says Kuwait accidentally shot down 3 American jets

The U.S. and Israel have been conducting strikes against targets in Iran since Saturday morning, with the aim of toppling Tehran’s clerical regime. Iran has fired back, with retaliatory assaults featuring missiles and drones targeting several Gulf countries and American bases in the Middle East.

“All six aircrew ejected safely, have been safely recovered, and are in stable condition. Kuwait has acknowledged this incident, and we are grateful for the efforts of the Kuwaiti defense forces and their support in this ongoing operation,” Central Command said.

“The cause of the incident is under investigation. Additional information will be released as it becomes available,” it added.

In a separate statement later Monday, Central Command said that American forces had been killed during combat since the strikes began.

“As of 7:30 am ET, March 2, four U.S. service members have been killed in action. The fourth service member, who was seriously wounded during Iran’s initial attacks, eventually succumbed to their injuries,” it said.

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Major combat operations continue and our response effort is ongoing. The identities of the fallen are being withheld until 24 hours after next of kin notification,” Central Command added.

This story has been updated.

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