Boeing Issues Layoff Notices

By David Shepardson, Allison Lampert
WASHINGTON (Reuters) – Boeing announced that it will begin issuing layoff notices to workers this week as part of a plan to cut 17,000 jobs, amounting to 10% of its global workforce.

U.S. employees receiving notices this week will remain on Boeing's payroll until January, complying with federal requirements for 60 days' notice before ending employment. It was widely anticipated that Boeing would send out the Worker Adjustment and Retraining Notification (WARN) in mid-November.

Boeing stated, "As previously announced, we are adjusting our workforce levels to align with our financial reality and a more focused set of priorities. We are committed to ensuring our employees have support during this challenging time."

These notices come as Boeing, under the leadership of new CEO Kelly Ortberg, seeks to revive production of the 737 MAX, which is critical for generating revenue. This effort follows a significant strike by more than 33,000 workers that halted much of its commercial jet production.

The MAX has generated over $24 billion in late October to stabilize Boeing’s finances and maintain its investment-grade rating. However, this year has been tumultuous for the company, starting with a door panel incident on a 737 MAX in January. The CEO's departure, slowed production due to safety investigations, and the strike on September 13 have added to the challenges.

With the end of the strike on November 5, workers are slowly returning to the assembly lines in Seattle, allowing for a gradual resumption of MAX production. However, the upcoming layoffs and cuts in spending have affected employee morale, according to sources who reported that many were anxiously waiting for communications about their job status from supervisors.

Sources:
– Anonymous reports
– Boeing statement