Boeing to Lay Off Over 2,500 Workers in the US

Boeing will lay off more than 2,500 workers in the U.S. states of Washington, Oregon, South Carolina, and Missouri, according to federally required filings posted on Monday and a union official, as part of the debt-heavy U.S. planemaker’s plan to cut 17,000 jobs, or 10% of its global workforce.

Layoffs to Affect Workers in Key Manufacturing Hubs

Nearly 2,200 layoff notices went to workers in Washington and another 220 in South Carolina, the two states where Boeing builds commercial airliners. Boeing declined to comment on the layoffs on Monday.

The aerospace giant started telling affected U.S. workers on Wednesday that they will stay on Boeing’s payroll until January 17, to comply with federal requirements to notify employees at least 60 days prior to ending their employment.

News that Boeing would send out the Worker Adjustment and Retraining Notification (WARN) in mid-November was widely expected. Another round is expected in December. Boeing could also use workforce attrition, selective hiring, and sales of subsidiaries to reduce its workforce.

Boeing Shares Gain 2.6% on Monday

Boeing shares gained 2.6% to close at $143.87 on Monday.

Industry-Watchers Await WARNs for Indication of Layoffs’ Impact

In October, Boeing’s new CEO, Kelly Ortberg, said the company does not intend to “take people off production or out of the engineering labs.” Industry-watchers have been waiting for the WARNs for some indication of how the layoffs could affect workers in the company’s key manufacturing hubs.

Several Hundred Engineers and Production Workers Receive Layoff Notices

However, several hundred engineers and production workers were among those who received pink slips last week.

The Society of Professional Engineering Employees in Aerospace said 438 of the union’s members at Boeing received layoff notices last week, including 218 engineers and 220 technicians.

The International Association of Machinists and Aerospace Workers (IAM) District Lodge 837 in St. Louis said Boeing sent notices to 111 members, most of whom made wing components for the 777X.

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Conclusion

Boeing’s decision to lay off over 2,500 workers in the US is a significant blow to the company’s workforce and the industry as a whole. The layoffs are part of Boeing’s plan to cut 17,000 jobs, or 10% of its global workforce, in an effort to reduce costs and improve its financial performance.

FAQs

Q: How many workers will be laid off by Boeing?
A: Over 2,500 workers in the US states of Washington, Oregon, South Carolina, and Missouri will be laid off.

Q: Why is Boeing laying off workers?
A: Boeing is laying off workers as part of its plan to cut 17,000 jobs, or 10% of its global workforce, in an effort to reduce costs and improve its financial performance.

Q: When will the layoffs take effect?
A: The layoffs will take effect on January 17, 2024, for affected workers in the US.

Q: How will Boeing support affected workers?
A: Boeing will provide affected workers with a severance package and outplacement assistance to help them transition to new jobs.