Boeing announces layoffs amid restructuring efforts

Policy

Simple Flying | Simple Flying

By Sky Industry News

Nov 14, 2024

Boeing has initiated layoffs, affecting approximately 10% of its workforce, as part of a strategy to streamline operations. The company is aligning its workforce with financial realities and focusing on key priorities, according to a Boeing spokesperson who confirmed the issuance of layoff notices.

"We are committed to ensuring our employees have support during this challenging time," said the spokesperson. Employees affected by the layoffs will leave Boeing in mid-January 2025 and may receive severance pay, career transition services, and subsidized healthcare benefits for up to three months post-departure.

Kelly Ortberg, Boeing's CEO, emphasized four main priorities during an earnings call: cultural change, business stabilization, improved execution discipline, and building a new future for Boeing. These goals include reducing inefficiencies and non-essential activities within the company.

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Ortberg stated that creating a new aircraft is not feasible in the short term due to financial constraints but noted that restoring production rates could return Boeing to being cash-positive. "We need to reset priorities and create a leaner, more focused organization," he added.

Boeing's CFO Brian West discussed expected cash usage improvements in 2025 compared to 2024. The company plans to increase production rates of its commercial aircraft division following FAA approval.

The next potential aircraft project remains uncertain but is expected to be developed in Seattle after recent union contract approvals secured this location. While no official name has been decided for this future aircraft program, it might be referred to as the 797.