Boeing is set to reduce its workforce by over 2,500 employees across Washington, Oregon, South Carolina, and Missouri, as revealed in mandatory filings released on Monday and confirmed by a union representative. This move is part of the company’s broader strategy to eliminate 17,000 positions, amounting to 10% of its total global staff.
Approximately 2,200 employees in Washington and an additional 220 in South Carolina received layoff notifications, in the regions where Boeing manufactures its commercial aircraft. The company chose not to provide any remarks regarding the job cuts on Monday
The aerospace giant began informing impacted U.S. employees on Wednesday that they will remain on Boeing’s payroll until January 17, in order to meet federal regulations that mandate a minimum 60-day notice before terminating employment.
The announcement regarding Boeing’s plan to issue the Worker Adjustment and Retraining Notification (WARN) in mid-November was anticipated by many. A new phase is anticipated in December. Boeing may consider leveraging workforce attrition, targeted hiring, and divestitures of subsidiaries as strategies to streamline its workforce.
On Monday, shares of Boeing rose by 2.6%, finishing the day at $143.87.
In October, Boeing’s new leader, Kelly Ortberg, stated that the company plans to maintain its workforce in production and engineering labs. Observers in the sector have been anticipating the WARNs to gain insight into the potential impact of layoffs on employees in the company’s primary manufacturing centers.
Last week, several hundred engineers and production workers were among those who were let go.
Last week, the Society of Professional Engineering Employees in Aerospace reported that 438 members at Boeing were issued layoff notices, comprising 218 engineers and 220 technicians.
Boeing has issued notices to 111 members of the International Association of Machinists and Aerospace Workers (IAM) District Lodge 837 in St. Louis, with the majority involved in the production of wing components for the 777X.
The specifics of who is facing layoffs appear to differ across various divisions at Boeing, as reported by several non-union employees who received WARN notices to Reuters.
An engineer from Boeing Defense, Space & Security reported that nearly all members of his 12-person team were dismissed, with only two or three remaining. Another engineer mentioned that she was the sole recipient of a WARN notice among her approximately 20-person team. Both expressed that they offer essential assistance to production and design engineers, yet they are not regarded as part of the production team.
As Boeing works to resume production of its top-selling model, the company faces challenges following a prolonged strike involving over 33,000 workers on the U.S. West Coast, which disrupted the output of many commercial jets.