Over 16,000 More Workers to be Cut in Financial Recovery Plan

Boeing recently handed pink slips to over 400 employees as part of its plan to shed 10% of its workforce. The first round of layoffs was issued to members of the Society of Professional Engineering Employees in Aerospace union, or SPEEA.

The affected employees will still be on the payroll through mid-January 2025. SPEEA reported that layoffs were delivered to 438 of its 17,000 members who work through Boeing in Washington, Oregon, California, or Utah.

218 of the cut workers are part of SPEEA’s professional unit, which consists of engineers and scientists. The other 220 are Boeing analysts, planners, technicians, and skilled tradesmen. Employees will be offered transition assistance, health care benefits, and severance pay while they look for new jobs.

Boeing announced plans to drop 10% of its workforce, or around 17,000 people, in October. This was revealed amidst the nearly two-month strike, which involved nearly 33,000 Boeing machinists.

The company was forced to put a “complete halt” to production of its popular 737 model during the strike, which began on September 13 and ended on November 5. It also temporarily paused work on its 767, 777/777X, P-8, KC-46A, and E-7 in Washington.

However, the strike was just one of many factors contributing to the mega manufacturer’s financial peril. Several events, including the infamous door panel incident on an Alaska Airlines flight in January, have put harmful cracks in Boeing’s reputation. This even sparked an FAA investigation in October.

Boeing reported losses exceeding $6 billion in quarter three of 2024. Recently named CEO Kelly Ortberg informed workers that the manufacturer has no other option but to “reset its workforce levels to align with our financial reality.”

The over 16,000 remaining layoffs are expected to commence in massive groups early next year.

FMI: www.boeing.com