Boeing layoffs: Hundreds in Washington and California face job losses
Boeing, one of the world’s largest aerospace companies, has laid off hundreds of workers.
In Washington state and California as part of a larger plan to reduce its workforce, reported news agency Associated Press. These layoffs are part of Boeing’s efforts to manage financial challenges and align with its operational priorities.
The report mentioned that nearly 400 employees in Washington state and more than 500 in California were let go. This is part of a larger reduction that aims to cut around 17,000 jobs from Boeing’s global workforce.
Boeing had previously announced its intention to reduce its workforce by 10% in the coming months. This decision is part of the company’s recovery strategy, which includes managing the financial and operational setbacks it has faced in recent years.
The company is working to restore production of its popular 737 MAX aircraft, which was disrupted by a nearly two-month strike involving over 33,000 West Coast workers. While the strike impacted the production of most of Boeing’s commercial aircraft, CEO Kelly Ortberg said that the layoffs were not caused by the strike. Instead, they were attributed to overstaffing in various roles.
IMPACT ON EMPLOYEES
The recent round of layoffs affected a range of positions, including engineers, recruiters, and analysts. These cuts have affected Boeing’s commercial, defence, and global services divisions. Notices of the layoffs were filed with state employment agencies, with the first round reportedly impacting around 3,500 employees nationwide.
Boeing has assured that most laid-off employees will remain on the payroll for about two months. In addition, they will receive severance pay, career transition assistance, and subsidised health insurance benefits for up to three months.
“As announced in early October, we are adjusting our workforce levels to align with our financial reality and a more focused set of priorities,” Boeing spokespeople said in a statement.
The layoffs come as Boeing continues to face financial difficulties stemming from multiple crises. The company’s troubles began with two fatal crashes of its 737 MAX jetliner in 2018 and 2019, which claimed 346 lives and led to the aircraft being grounded worldwide for over a year.
Boeing’s reputation was further damaged in January this year when an Alaska Airlines plane suffered a fuselage issue during flight. The incident raised additional safety concerns about its aircraft.
To strengthen its finances, Boeing closed a Rs 24.3 billion equity offering in November. This move was aimed at preserving its investment-grade credit rating and ensuring sufficient funds to support its operations and recovery plans.