Boeing has recently implemented significant layoffs in Washington state and California, affecting hundreds of employees as part of its planned workforce reduction. The aerospace company is aiming to reduce its workforce by approximately 17,000 employees in total.
Reports indicate that nearly 400 Boeing employees were laid off in Washington state, with over 500 job cuts in California. These actions come as Boeing works to recover from financial challenges, regulatory issues, and a recent strike by its machinists that lasted nearly two months.
Boeing's CEO, Kelly Ortberg, clarified that the layoffs were not a direct result of the strike but were primarily due to overstaffing within the company. In November, Boeing began notifying employees about the impending layoffs, with approximately 3,500 individuals across various roles being impacted nationwide.
The layoffs affected employees in different divisions of Boeing, including commercial, defense, and global services. The company has assured that most laid-off employees will remain on payroll for about two months and will receive severance pay, career transition services, and subsidized health insurance benefits for up to three months.
Boeing spokespersons reiterated that the layoffs are part of the company's efforts to align its workforce levels with its financial situation and strategic priorities. The aerospace giant, headquartered in Arlington, Virginia, has been facing financial challenges since the tragic crashes of its 737 Max jetliner in 2018 and 2019, which claimed the lives of 346 individuals. Additionally, Boeing's reputation suffered further when a panel detached from an Alaska Airlines plane in January.
