Boeing (NYSE: BA) just dropped a bombshell: more than 400 layoff notices went out this week as part of a massive plan to cut 17,000 jobs or 10% of the global workforce. It’s been a brutal year for the aerospace giant, hit by regulatory setbacks, reduced production and an eight-week machinist strike that cost the company more than $6 billion in the third quarter alone. CEO Kelly Ortberg says the layoffs are about reducing overstaffing, not about the fallout from the strike, but employee morale is declining as Boeing navigates what he calls its financial reality. The company’s signature 737 MAX, once a revenue broker, is still struggling to meet production targets, adding to the pain.

• Warning! GuruFocus has discovered 5 warning signs with BA.

Here’s the twist: Boeing’s demand is more than solid, actually. The company sits on a backlog of over 6,000 planes worth half a trillion dollars. Recent defense wins, including a $5.2 billion deal with Israel and $8.46 billion in U.S. contracts, prove Boeing’s long-term relevance in the aerospace industry. But short-term pressures are brutal. Shares have fallen a staggering 42% this year, hit by layoffs, diluted equity and rising debt. Analysts see a potential rebound fueled by January’s typical tax-loss recovery, but for now the stock is deep in the red. For those with turbulence in their stomachs, Boeing may be a long-term play, but it’s not for the faint of heart.

What are investors really sweating? One wildcard: Trump-era trade tensions could be roaring back, with the ex-president eyeing steep tariffs on imports. Boeing’s supply chain is dependent on international parts, which can mean skyrocketing costs and slimmer margins. Add in potential retaliation from global markets, and Boeing’s shot at a post-strike revival becomes even more difficult. For now, Boeing remains an aerospace heavyweight, but its road to recovery is fraught with challenges that could leave even seasoned investors pondering their next move.

This article first appeared on GuruFocus.