Boeing announced plans to lay off over 2,500 workers across four U.S. states, including Washington, Oregon, South Carolina, and Missouri, as part of a broader strategy to reduce its global workforce by 17,000 jobs, or 10%.
The layoffs, which primarily affect workers in Boeing’s commercial airliner manufacturing sites, are part of the company’s effort to cut costs amid heavy debt, according to Reuters.
Nearly 2,200 workers in Washington and 220 in South Carolina will be affected by the job cuts.
Boeing notified these employees through federally required Worker Adjustment and Retraining Notification (WARN) filings, which were made public on Monday. Workers will remain on the payroll until January 17, 2024, in compliance with federal law.
The company’s move is in line with plans to downsize its operations, with another round of WARN notices expected in December.
Boeing has also indicated that it may reduce its workforce through attrition, selective hiring, and the sale of subsidiaries.
Despite the layoffs, Boeing’s stock saw a 2.6% increase on Monday, closing at $143.87 per share.
In October, Boeing’s new CEO, Kelly Ortberg, emphasized that the company would not cut jobs from production or engineering labs.
However, the layoffs affected various sections within the company, with both engineers and production workers receiving notices.
The Society of Professional Engineering Employees in Aerospace confirmed that 438 union members were laid off, including engineers and technicians.
Additionally, members of the International Association of Machinists and Aerospace Workers (IAM) in St. Louis were also affected.
Some employees in Boeing’s Defense, Space & Security division also faced layoffs, with several engineers and support staff being let go despite being critical to ongoing production.
These layoffs come as Boeing is working to resume production of its 737 MAX, following a strike by thousands of workers that halted most commercial jet production.
