A subsequent mandatory revamp of Boeing's entire production system was accompanied by a cap on 737 MAX output, which has limited the company's aircraft deliveries and income. That led to Boeing announcing first half losses of $33 billion in June, and a rising debt load to nearly $60 billion. With even previous production under the 737 MAX cap now virtually halted by the strike, ratings agencies have warned they may move to cut the company's credit rating to junk status. That could prevent many institutional investors like pension funds from holding its stock. The threat may have been one reason behind Boeing's announcement Friday that it will cut 10 percent of its workforce—about 17,000 employees. The surprise decision—even as it battles with the machinists' union over its demands for a 40 percent increase in worker pay over the next four years—may have sought to placate the ratings agencies with appearances of restructuring.