Boeing’s massive layoff of 2,199 Washington workers signals deeper troubles for the aerospace giant.
At a Glance
- Boeing has laid off 2,199 workers in Washington as part of a larger plan to cut 17,000 jobs company-wide.
- The layoffs are part of a 10% workforce reduction announced in October, driven by financial and regulatory challenges.
- Over 400 members of the Society of Professional Engineering Employees in Aerospace (SPEEA) received layoff notices.
- Boeing CEO Kelly Ortberg stated the layoffs were due to overstaffing, not the recent strike.
Boeing’s Drastic Measures Amid Financial Turmoil
In a shocking move that underscores the depth of Boeing’s financial woes, the aerospace giant has announced the layoff of 2,199 workers in Washington state. This reduction is part of a broader strategy to slash approximately 17,000 jobs across the company, representing a staggering 10% of its global workforce. The decision comes as Boeing grapples with the aftermath of two fatal 737 Max jetliner crashes in 2018 and 2019, which have led to ongoing financial difficulties and regulatory scrutiny.
The layoffs span across Boeing’s three main divisions: commercial airplanes, defense, and global services. This comprehensive reduction affects facilities nationwide, including those in Washington, Missouri, Arizona, and South Carolina. Prior to these cuts, Boeing employed 66,000 workers in Washington alone, highlighting the significant impact on the state’s aerospace industry.
Boeing said in a notice filed with Washington's Employment Security Department on Monday that it has so far laid off 2,199 workers in the state, among job cuts that will eventually total about 17,000 across the company.https://t.co/62STywOn1A
— KOMO News (@komonews) November 18, 2024
SPEEA Members Hit Hard by Layoffs
The Society of Professional Engineering Employees in Aerospace (SPEEA), which represents approximately 17,000 Boeing workers across several states, has been particularly affected by this round of layoffs. Over 400 SPEEA members received layoff notices, effective mid-January. This represents about 2.5% of the union’s total membership at Boeing, a significant blow to the skilled workforce that forms the backbone of the company’s engineering and technical capabilities.
The layoffs target what Boeing describes as overstaffing and aim to reduce inefficiencies. However, this move has raised concerns among union leaders, who question the wisdom of cutting skilled workers when the company faces a backlog of nearly 5,500 airplanes. Jon Holden, a union president, expressed that these layoffs seem “very short-sided” given the need to ramp up production to meet demand.
Financial Struggles and Production Challenges
Boeing’s decision to implement these layoffs is directly linked to the company’s dire financial situation. Over the past five years, Boeing has incurred losses totaling $25 billion, a financial hemorrhage partly attributed to the MAX jet crashes and subsequent production issues. The company is currently limited by the FAA to producing only 38 737 MAX planes per month, a target that has yet to be reached due to recent labor strikes.
Adding to Boeing’s woes, the 777X passenger plane program, manufactured in Everett, Washington, has faced significant delays. These setbacks, combined with the recent $6 billion quarterly loss and substantial debt, have forced the company to take drastic measures to regain financial stability under the leadership of new CEO Kelly Ortberg.
Support for Affected Employees and Future Outlook
Boeing has committed to providing support for the laid-off employees, including career transition services, subsidized health care benefits for up to three months, and severance pay. SPEEA is also assisting affected members in understanding their rights, accessing unemployment insurance, and utilizing career transition services.
A company statement noted, “We’re 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.”
Despite these efforts, the future remains uncertain for Boeing and its workforce. The company is considering a second round of job cuts, with potential notifications coming as early as December. As Boeing struggles to navigate its financial and regulatory challenges, the impact on its employees and the broader aerospace industry in Washington state and beyond remains a critical concern.
