Aerospace giant Boeing has initiated significant layoffs in Washington and California as part of planned workforce reductions in the U.S. These cuts will ultimately reduce the company’s headcount by approximately 17,000 employees. As part of this process, around 400 employees in Washington and over 500 in California have been laid off.
Previously, Boeing announced plans to downsize its workforce by 10% over the coming months as it grapples with financial challenges, regulatory issues, and the aftermath of a two-month machinists’ strike. However, CEO Kelly Ortberg clarified that the layoffs were not a direct result of the strike but were necessary due to overhiring in recent years. Employees were informed in advance about the decision.
Numerous jobs, including analysts, recruiters, and engineers, were impacted by the most recent round of layoffs. The commercial, defense, and worldwide services divisions of Boeing have all been impacted by these cuts. Approximately 3,500 workers across the country were impacted by the initial round of layoffs, as reported to state employment agencies.
Boeing has promised that the majority of its laid-off workers will continue to be paid for around two months. In addition, they will receive up to three months of subsidized health insurance coverage, job transition support, and severance money.
In an announcement, Boeing representatives stated, “We are modifying our workforce levels to align with our financial reality and a more focused set of priorities, as announced in early October.”
The layoffs occur as Boeing continues to struggle financially as a result of several challenges. The company’s problems started when its 737 MAX airplane crashed twice in 2018 and 2019, killing 346 people and causing the plane to be grounded globally for more than a year.
In January of this year, an Alaska Airlines aircraft experienced a fuselage problem while in flight, further harming Boeing’s reputation. Additional safety issues regarding its aircraft were brought up after the incident.
In November, Boeing closed a Rs 24.3 billion equity issue to bolster its finances. Maintaining its investment-grade credit rating and making sure it had enough money to support its operations and recovery plans were the goals of this action.
