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Boeing announces layoff impacting over two thousand employees in Washington

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Boeing announces layoff impacting over two thousand employees in Washington
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Boeing has announced the layoff of 2,199 employees in Washington, including over 400 engineers who are members of the Society of Professional Engineering Employees in Aerospace (SPEEA). This decision was communicated through a worker adjustment and retraining notification (WARN) sent to the Washington State Employment Security Department on November 15. The layoffs will begin on December 20.

A Boeing representative explained that these workforce reductions are part of the company's adjustments to align with its financial situation and revised priorities. The spokesperson emphasized Boeing's commitment to supporting affected employees, stating that most will depart in January 2025. Eligible workers will receive severance pay, career transition services, and subsidized healthcare benefits for up to three months post-employment. The company is focusing on attrition and prioritizing backfills for business-critical roles.

Kelly Ortberg, Boeing's president and CEO, had previously indicated plans for workforce reduction in October, targeting a 10% cut or approximately 17,000 positions over the coming months. Ortberg outlined these plans during prepared remarks before Boeing's Q3 earnings call. He described a vision for "building a new future for Boeing," which includes stabilizing operations, improving program execution, streamlining portfolios, and restoring financial balance to pave the way for future aircraft development.

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Ortberg clarified that the layoffs were unrelated to a recent machinists' strike. Members of the International Association of Machinists and Aerospace Workers (IAM) District Lodge 751 and District W24 approved a contract on November 4 after walking off their jobs earlier that month.

The last significant round of layoffs at Boeing occurred during the pandemic as part of efforts to adapt to market impacts and prepare for future challenges. The company has faced additional pressures from issues such as the grounding of its 737 MAX aircraft between March 2019 and November 2020.

At year-end figures show an increase in employment from 141,000 in late 2020 to 171,000 by end-2023. Despite challenges like those faced during the pandemic and subsequent operational hurdles, Boeing Commercial Airplanes reported positive operating margins by Q4 2023.

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