Boeing Announces Layoffs for Over 400 Workers Amid Workforce Reduction Plans

Boeing Announces Layoffs for Over 400 Workers Amid Workforce Reduction Plans

Boeing has issued layoff notices to more than 400 employees belonging to its professional aerospace labor union. This move is part of a broader plan to reduce its workforce significantly as the company grapples with financial struggles, regulatory hurdles, and the aftermath of an eight-week strike by its machinists’ union.

The notices were sent to members of the Society of Professional Engineering Employees in Aerospace (SPEEA) last week, according to The Seattle Times. Affected employees will remain on the payroll until mid-January.

In October, Boeing revealed its intention to cut approximately 10% of its global workforce, translating to around 17,000 jobs. CEO Kelly Ortberg stated the reductions are necessary to align staffing levels with the company’s financial realities.

The SPEEA union reported that 438 members were directly impacted by these layoffs. The union represents 17,000 Boeing employees, primarily based in Washington, with additional members in Oregon, California, and Utah. Among those laid off, 218 belong to the professional unit, which includes engineers and scientists, while the rest are part of the technical unit, encompassing roles such as analysts, planners, and technicians.

Support for Affected Employees
Boeing has committed to offering career transition services and subsidized healthcare benefits for up to three months to the affected workers. Additionally, severance packages will be provided, typically amounting to one week of pay for each year of service.

Challenges Leading to the Layoffs
While the recent machinists’ strike put financial pressure on the company, Ortberg emphasized that the layoffs were driven by overstaffing rather than the strike itself.

Boeing, headquartered in Arlington, Virginia, has faced ongoing financial and regulatory challenges. Production rates slowed dramatically after a critical incident in January, where a panel detached from the fuselage of an Alaska Airlines plane. This incident, coupled with restrictions from the Federal Aviation Administration (FAA) on the production of the 737 MAX, has hindered Boeing’s recovery. Despite efforts, the company has yet to reach the FAA-imposed limit of 38 planes per month.

As Boeing navigates these turbulent times, the layoffs underscore the company’s struggle to stabilize its operations and meet regulatory requirements while maintaining financial health.