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So they have decided that it's cheaper to scrap that particular model than fix the issues, likely more reputation than technical.

They are suspending production until the grounding is lifted.

Not killing off the product.

They will of course not be paying the tens of thousands of workers that work on that product while production is suspended.

No layoffs at Boeing because of IAM, but you can bet when Boeing stops placing orders from their supplier network, people are going to be laid off.