Boeing plans to lay off more than 2,500 workers as part of plan to reduce its global workforce
The US aviation giant company Boeing, said on Tuesday it will lay off more than 2,500 workers in Washington, Oregon, South Carolina and Missouri, part of an effort to cut 17,000 jobs, or 10% of its global workforce, as the debt-laden company restructures its operations and cuts costs.
According to official documents and a union official, Boeing has sent layoff notices to about 2,200 workers in Washington state, as well as another 220 notices to workers in South Carolina, the company’s two main states where commercial passenger jets are manufactured.
Boeing began notifying affected US employees last Wednesday that they will remain on the payroll through January 17, in line with federal requirements that require companies to notify employees 60 days before they are terminated.
The company is expected to make another round of cuts in December, along with additional steps that include reducing its workforce through attrition, selective hiring, and the sale of subsidiaries.
Despite these plans, Boeing’s new CEO, Kelly Ortberg, said in October that the company doesn’t plan to lay off workers on its production lines or engineering labs.
Boeing shares rose 2.6% on Monday to close at $143.87 per share, reflecting the market’s positive reaction to the recent developments.
The Aerospace Professional Engineering Employees Association reported that 438 union members received layoff notices last week, including 218 engineers and 220 technicians.
Some employees in the Defense, Space and Security division reported that their teams had seen significant reductions, with most of their members being laid off.
One engineer said that only two of her 12-person team remained, while another engineer said she was the only one of her 20-person team to receive a layoff notice.
The measures come as Boeing tries to resume production of its best-selling plane, the 737 Max, after a long strike by more than 33,000 workers on the US West Coast that halted production of most of the company’s commercial aircraft.
Boeing is seeking to balance financial restructuring with ensuring production continuity to meet demand for its aircraft.
However, the impact of the massive layoffs on production quality and operational efficiency will remain of interest to observers and investors.
