Boeing is laying off numerous employees in Washington state as part of a global workforce reduction plan affecting approximately 17,000 jobs. The layoffs include several hundred employees who will be let go in December, while most are expected to exit in mid-January. A small number will lose their jobs in December.
The layoffs follow a significant labor strike involving 33,000 workers in the Seattle area. This strike began on September 13, resulting from workers rejecting a tentative contract that Boeing characterized as beneficial. The strike halted production of key aircraft, including the 737 Max, vital for Boeing’s revenue.
Boeing stated, “As previously announced, we are adjusting our workforce levels to align with our financial reality and a more focused set of priorities. We are committed to ensuring our employees have support during this challenging time.”
These workforce reductions are part of a 10% cut announced in October to revamp the company after facing challenges, including a weeks-long strike that stalled production.
Kelly Ortberg, who became CEO in August, acknowledged the difficult position of the company in a memo to staff. He emphasized the need for structural changes to ensure Boeing remains competitive and can meet customer demands.
CEO Kelly Ortberg stated, “Our business is in a difficult position, and it is hard to overstate the challenges we face together.”
Ortberg added, “The situation requires tough decisions, and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term.”
Eligible workers will receive severance pay, career transition services, and subsidized health care benefits for up to three months after leaving the company.
Boeing announced the end of production of its 767 aircraft by 2027 after fulfilling existing orders for 29 jets. The rollout of the new 777X has been delayed until 2026 due to the discovery of a defective part that grounded test flights earlier this year.
Boeing’s financial situation has been precarious, prompting the company to raise over $24 billion in late October to stabilize its finances. The company’s challenges escalated earlier this year when a door panel blew off a 737 Max jet in midair, leading to increased scrutiny from regulators.
