Boeing slashes jobs: Layoff notices sent to 2,200 employees

Boeing has issued layoff notices to nearly 2,200 employees in Washington, marking the start of significant workforce reductions. The layoffs are part of a company-wide plan to eliminate approximately 17,000 jobs, or 10% of its total workforce, as the aerospace giant struggles to stabilize its operations after years of financial challenges.

The company’s notice, filed with Washington’s Employment Security Department, confirmed that these layoffs are permanent and will take effect beginning December 20. The affected employees include members of various labor unions, with hundreds from the Society of Professional Engineering Employees in Aerospace (SPEEA) among those receiving notices.

The decision to reduce the workforce comes after a series of setbacks for Boeing, including regulatory hurdles, production delays, and significant financial losses. CEO Kelly Ortberg explained that the job cuts are necessary to align the company’s staffing levels with its current financial realities, emphasizing that Boeing has faced $25 billion in losses over the past five years.

Boeing’s troubles have been fueled by multiple factors. The company is still recovering from the fallout of two fatal crashes involving its 737 MAX jets in 2018 and 2019, which led to production halts and regulatory scrutiny. A door plug incident earlier this year compounded these challenges, further eroding public trust and operational efficiency.

Adding to the strain, Boeing has been producing its 737 MAX jets at a slower pace, unable to reach the FAA-capped rate of 38 planes per month. The recent strike by machinists, which lasted seven weeks, also disrupted assembly lines and further complicated the company’s financial recovery efforts.

For many employees, the layoffs add a layer of uncertainty following the resolution of the machinists’ strike earlier this month. Approximately 33,000 union members participated in the strike, which concluded with a new contract offering better terms for workers.

Some workers, like Rony, a machinist at Boeing’s Renton plant, expressed mixed feelings about the developments. “It’s good to have our insurance back and to see the new bonuses,” he said. “But it’s tough knowing that so many people are losing their jobs. It’s stressful for them and their families.”

Union leaders have raised alarms about the timing of the layoffs, particularly given the company’s substantial backlog of nearly 5,500 airplanes awaiting production. Jon Holden, president of the International Association of Machinists (IAM), described the decision as shortsighted, arguing that Boeing needs its skilled workers to ramp up production and deliver on its commitments.

SPEEA, which represents engineers, analysts, and planners at Boeing, is actively supporting its members during this transition. The union is hosting informational sessions to guide employees on their contractual rights, assist with unemployment applications, and offer career transition resources.

Among the SPEEA members affected are 218 engineers and 220 technical staff who will remain on the payroll until mid-January. Boeing has assured employees that they will receive severance pay, subsidized health care for three months, and career transition assistance.

While the recent machinists’ strike strained Boeing’s operations, Ortberg clarified that it was not the primary driver behind the layoffs. Instead, he pointed to broader issues, including overstaffing and production inefficiencies.

Boeing’s workforce in Washington had stood at 66,000 employees before these reductions. With the layoffs now underway, the state’s aerospace labor market will likely feel the ripple effects, with thousands of workers seeking new employment opportunities.