Boeing said Friday afternoon it will stop production of the 767 freighter in 2027, sooner than expected, and won’t have the next-generation 777-8 freighter ready for commercial use until 2028, at least a year later than previously scheduled, as the company looks to stem financial losses amid a month-long machinists strike.

Management also announced it will take a $3 billion pre-tax charge on the 777X and 767 programs, lay off about 10% of its workforce and report a third-quarter loss of $9.97 per share. About 17,000 workers will be let go.

The cut in freighter production schedules is a potential problem for the air cargo industry, which faces a growing shortfall in international widebody freighter capacity as many aircraft reach retirement age and shipping demand grows at a forecast annual rate of about 4%.

Boeing (NYSE: BA) said it now anticipates first delivery of the 777-9 passenger jet in 2026 and the 777-8 in 2028. It is recognizing an unexpected expense of $2.6 billion against earnings in the third quarter because of the delay. The schedule is being pushed back because of an updated assessment that certification of the modernized 777 jetliner will take longer than planned and delays associated with the strike by the International Association of Machinists and Aerospace Workers.

The Commercial Airplanes division also plans to shut production of the 767-300 freighter and take a $400 million charge because of the work stoppage. It will deliver the 29 remaining 767 cargo aircraft on order from FedEx and UPS before terminating the line. Beginning in 2027, the only 767 version that Boeing will continue to make is the KC-46A tanker for the U.S. military.

“While our business is facing near-term challenges, we are making important strategic decisions for our future and have a clear view on the work we must do to restore our company,” said President and CEO Kelly Ortberg, who began in the job two months ago. “These decisive actions, along with key structural changes to our business, are necessary to remain competitive over the long term. We are also focusing on areas that are critical to our future and will ensure we have the balance sheet necessary to invest, support our people and deliver for our customers.”

The debut of the 777X family of aircraft, which first flew in 2019, has already been delayed for years for a variety of issues. Boeing finally received Federal Aviation Administration approval for test flights last summer. Testing was slowed because the agency wasn’t satisfied with the technical data it had received from the company. The test flights over a 12-to-18-month period are necessary to certify the upgraded 777-9 airframe for commercial passenger service, with follow-on testing expected for the 777-8 freighter. Qatar Airways is the launch customer for the 777-8 cargo jet.