Boeing’s Restructuring Efforts Take Flight
Major Layoffs Announced in Washington and Oregon
In a move to tackle its debt woes, Boeing has announced plans to lay off over 2,200 workers in Washington and Oregon, as part of a larger effort to reduce its global workforce by 10%. This significant restructuring effort will see the aerospace giant shed 17,000 jobs worldwide.
Affected Workers to Receive Notice
Starting this week, affected U.S. workers will receive notice of their termination, with Boeing committing to keep them on the payroll until January 17, 2024, in compliance with federal requirements. Industry insiders had been anticipating this move, with another round of layoffs expected in December.
CEO Ortberg’s Vision for the Future
In October, Boeing’s new CEO, Kelly Ortberg, emphasized the company’s commitment to maintaining production and engineering capabilities, stating that they do not intend to “take people off production or out of the engineering labs.” However, the latest layoffs have raised concerns about the impact on workers in key manufacturing hubs.
Union Members Affected
Several hundred engineers and production workers have already received pink slips, including 438 members of the Society of Professional Engineering Employees in Aerospace (SPEEA) and 111 members of the International Association of Machinists and Aerospace Workers (IAM) District Lodge 837.
Variation in Layoffs Across Departments
Non-union workers who received WARN notices have reported varying levels of layoffs across different sections within Boeing. Some teams have been largely unaffected, while others have seen significant reductions. Engineers who were let go have expressed concerns that their departure will lead to increased workloads for remaining staff.
A Chance to Reassess and Refocus?
One Boeing retiree-turned-contractor, who was also let go, sees the layoffs as an opportunity for the company to reevaluate its workforce and eliminate non-essential positions. “There are a lot of people like that around Boeing, who are not being productive, who are just not essential,” they noted.
Production Restart Efforts
The layoffs come as Boeing works to restart production of its popular 737 MAX, following a weeks-long strike by over 33,000 U.S. West Coast workers that halted output of most commercial jets. Despite the challenges, Boeing shares rose 2.7% to $143.90 on Monday afternoon.
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