Boeing received a $10 billion bank credit line with “several big banks” and is expected to siphon off as much as $25 billion in stock in a move to stay financially afloat while the machinists strike wages on.

Boeing is expected to pursue a stock offering that raises around $10 billion, according to The Wall Street Journal, and the company told investors it could issue up to $25 billion in shares or debt during the next three years while also entering into a new credit agreement with lenders.

Boeing’s strike with the International Association of Machinists and Aerospace Workers (IAM) just turned a month old this week, costing the airplane manufacturer approximately $100 million-plus per day, according to analysts. Nearly 33,000 machinists walked off the job as a way to demand higher wages, better benefits and the restoration of a defined-benefit pension plan that was eliminated a decade ago.

More on the strike: Machinists, Boeing return to the bargaining table

Among the union’s demands is a 40% pay raise. Boeing most recently offered a 30% pay raise offer, but has since retracted it. Talks have since stalled despite both parties maintaining their openness to future negotiations.

Boeing has approximately $45 billion in net debt, but ended September with $10.3 billion in cash and securities, close to the minimum amount the company has said it needs to operate, according to The Wall Street Journal, in addition to the $10 billion it can acquire through selling stock.

“These are two prudent steps to support the company’s access to liquidity,” Boeing said in a statement.

Boeing also plans to cut around 17,000 jobs to avoid a credit rating downgrade. The layoffs are expected to come with 60-day layoff notices by mid-January 2025, mainly to employees in its commercial aviation division.

A second wave of layoffs could follow that December if the company is still struggling financially. The company hasn’t turned a profit since 2018.

“While our business is facing near-term challenges, we are making important strategic decisions for our future,” newly-appointed CEO Kelly Ortberg said in a statement.

More on Boeing’s new CEO: Kelly Ortberg starts as new Boeing CEO, will work out of company’s Seattle office

Boeing’s stock is down 19% year-over-year and down nearly 60% over the past five years, according to Trading View.

Frank Sumrall is a content editor at MyNorthwest. You can read his stories here and you can email him here.