Boeing plans to lay off more than 2,000 workers in Washington and Oregon. This move is part of a broader effort to cut 17,000 jobs worldwide, representing roughly 10% of its global workforce. The announcement was made through a filing with the Washington State Employment Security Department. According to the filing, the layoffs will take effect on December 20.
The Worker Adjustment and Retraining Notification (WARN) database reveals that 2,199 employees in Washington state will lose their jobs. Among those affected are 438 members of the Society of Professional Engineering Employees in Aerospace (SPEEA). This includes 218 engineers and 220 technicians, as reported by Reuters.
These layoffs follow a challenging year for Boeing, marked by safety concerns, labor unrest, and recovery efforts from the COVID-19 pandemic. The company’s decision underscores the difficulties faced by the aerospace giant as it seeks to stabilize operations.
Boeing’s Global Workforce Reduction Strategy
Boeing’s CEO, Kelly Ortberg, announced plans to reduce the company’s global workforce by 10%. The reduction will impact employees at all levels, including executives, managers, and general staff. Ortberg’s statement emphasized the need for decisive action to support the company’s long-term recovery.
“Over the coming months, we are planning to reduce the size of our total workforce by roughly 10 percent,” Ortberg said. “These reductions will include executives, managers, and employees. The state of our business and our future recovery require tough actions.”
The workforce reduction is part of a broader strategy aimed at stabilizing Boeing’s financial position. By trimming its employee base, Boeing aims to cut costs and improve operational efficiency.
Labor Disputes and Safety Issues Add Pressure
Boeing’s layoffs coincide with ongoing labor unrest and safety concerns. In October, Boeing’s Seattle-area workers went on strike for the first time since 2008. The strike involved members of the International Association of Machinists and Aerospace Workers (IAM). The strike ended on November 4 after a new agreement was reached, but some of those workers may still face layoffs in the coming months.
Boeing’s safety challenges are also significant. In September, the National Transportation Safety Board (NTSB) raised concerns about a potential malfunction in the rudder control system of the Boeing 737. The malfunction poses a safety risk in cold weather, further complicating Boeing’s path to recovery.
Boeing’s decision to cut jobs is part of a comprehensive plan to navigate financial pressures and operational challenges. These actions aim to position the company for a more stable future. The combined impact of labor disputes, safety concerns, and pandemic recovery efforts has placed Boeing under considerable strain.