Boeing is preparing for its second wave of layoffs in Washington state, affecting nearly 400 employees. The aerospace giant announced plans to cut 10% of its workforce, about 17,000 jobs, earlier this month. According to CEO Kelly Ortberg, the company must “reset its workforce levels” due to financial difficulties and regulatory troubles.
The latest round of layoffs will impact workers who received permanent layoff notices on December 9. Employees will remain on the payroll until the third week of February. The affected employees will receive three additional months of subsidized health care, severance pay, and career transition help.
The decision to lay off employees comes from Boeing’s $25 billion in losses over the past five years. These losses are attributed to fatal crashes of the MAX jets in 2018 and 2019, as well as a door plug blowout earlier this year. The Federal Aviation Administration capped production of the 737 MAX at 38 planes per month, contributing to slowed production rates.
In October, CEO Ortberg stated that the layoffs were not caused by the recent strike, but rather due to overstaffing. However, the strike did strain Boeing’s finances, highlighting the need for cost-cutting measures.
Source: https://komonews.com/news/local/boeing-announces-another-round-of-layoffs-impacting-400-workers-in-washington-state-notices-company-begins-workforce-reductions-washington-state-employee-security-department-ceo-kelly-ortberg-unionized-machinists-analysts-overstaffing-losses-payroll-empl