WOEING: Boeing’s defense unit logs massive $2 billion in losses for third quarter.

Boeing’s defense unit will take $2 billion in losses on fixed-price contracts when it reports its third quarter results later this month, the company disclosed today, bringing total defense-related charges for the company up to $3.2 billion this year. The wider company also announced plans to slash 10 percent of its total workforce.

The charges to its defense arm come as the US planemaker hemorrhages money amid an ongoing strike by its Seattle-area machinists union and as it announced the conclusion of its 767 freighter production — both factors the company states contributed to losses on the T-7A trainer, MQ-25 tanker drone, KC-46 tanker and NASA’s Starliner in the most recent financial quarter.

The T-7 trainer logged the largest charge, worth $900 million, due to what the company said were higher estimated costs for production in 2026 and beyond.

Behind it, the KC-46 logged a $700 million loss due to Boeing’s decision to end production of the 767 freighter, the commercial aircraft on which the militarized tanker is based. The company also pointed the finger at the ongoing machinists union strike, which has paused production of commercial airplanes, such as the 767 made in the company’s Seattle facilities.

The company did not lay out a breakdown for the losses incurred by the MQ-25 and Starliner programs.

There are still three available Commercial Crew missions to ISS on Starliner that Boeing was expected to win and three that the company is already contracted to fly. But there’s no word yet from either Boeing or NASA on Starliner’s fate.