Boeing is set to lay off over 2,500 employees in Washington, Oregon, South Carolina, and Missouri as part of its plan to cut 17,000 jobs globally. The company’s debt-heavy restructuring efforts are leading to workforce reductions in key manufacturing hubs.
Most of the layoffs will affect workers in Washington and South Carolina, where Boeing builds commercial airliners. Affected employees will remain on Boeing’s payroll until January 17, in compliance with federal regulations requiring a 60-day notice period.
Boeing’s new CEO, Kelly Ortberg, has stated that the company aims to avoid layoffs in production and engineering roles. However, recent Worker Adjustment and Retraining Notification (WARN) notices indicate that some engineers and production workers have already been let go.
The layoffs are part of Boeing’s strategy to streamline operations and reduce costs. The company may implement additional workforce reductions through attrition, selective hiring, and divestment of subsidiaries.
Despite these developments, Boeing shares saw a 2.6 percent increase on Monday, closing at $143.87. The company is also working to resume production of the 737 MAX, its top-selling aircraft, following a recent strike by West Coast workers.
The layoffs have had a significant impact on union members, with groups like the Society of Professional Engineering Employees in Aerospace and the International Association of Machinists and Aerospace Workers reporting notices sent to their members. The specific departments and roles affected by the layoffs vary within the company.
Overall, Boeing’s workforce reductions are a response to challenging market conditions and the need to streamline operations for long-term sustainability.
By Dan Catchpole and Allison Lampert
