Boeing plans to lay off over 2,000 employees in Washington and Oregon this December. The layoffs are part of the company’s global workforce reduction, targeting 17,000 jobs, or 10% of its workforce. The announcement was disclosed in a filing with Washington State’s Employment Security Department.
The cuts will take effect on December 20, impacting various departments across the company. According to the state’s Worker Adjustment and Retraining Notification (WARN) database, 2,199 workers in Washington will lose their jobs. This includes 438 members of the Society of Professional Engineering Employees in Aerospace (SPEEA). Among them, 218 engineers and 220 technicians are set to receive layoff notices, Reuters reported.
Boeing’s Strategy for Workforce Reduction
Boeing CEO Kelly Ortberg announced the company’s plans to cut 10% of its global workforce. These reductions will affect employees at all levels, including executives, managers, and staff. Ortberg emphasized the need for decisive action to address the company’s ongoing challenges.
“Over the coming months, we are planning to reduce the size of our total workforce by roughly 10 percent,” Ortberg stated. “These reductions will include executives, managers, and employees. The state of our business and our future recovery require tough actions.”
The decision is part of Boeing’s broader strategy to stabilize its operations. The company aims to address financial and operational difficulties, including challenges related to labor disputes and aircraft safety concerns.
Challenges Complicate Boeing’s Recovery
Boeing’s layoffs follow a difficult year marked by labor strikes and safety concerns. In October, workers in the Seattle area initiated their first strike since 2008. The International Association of Machinists and Aerospace Workers (IAM) led the strike, which ended on November 4 after a new agreement was reached. Despite the resolution, layoffs now threaten many of the workers who participated.
Safety issues have also intensified scrutiny of Boeing’s aircraft. In September, the National Transportation Safety Board (NTSB) issued a warning about the potential failure of a critical part in Boeing 737 rudder control systems. This defect, which could malfunction in cold weather, raised safety concerns about the planes.
Boeing’s decision to lay off thousands of workers underscores its efforts to navigate these challenges. The company seeks to manage its recovery and stabilize operations during a challenging business environment.
