Boeing has announced the layoff of 396 employees in Washington state, part of a larger effort to cut its global workforce by 10%. The aerospace giant plans to reduce approximately 17,000 jobs worldwide as it navigates ongoing financial and regulatory challenges.
The Washington layoffs, which will span various departments, are part of a broader strategy to align workforce levels with what Boeing described as "financial reality and a more focused set of priorities." In addition to the layoffs in Washington, over 500 jobs will be cut in California, with smaller reductions planned in Oregon, South Carolina, and Missouri.
Employees impacted by the cuts will remain on payroll for about two months and are eligible for severance pay, subsidized health insurance for up to three months, and career transition services, the company said.
This wave of layoffs comes during a tumultuous period for Boeing. The company is still recovering from two fatal crashes of its 737 MAX jetliners in 2018 and 2019, which killed 346 people and led to a lengthy grounding of the aircraft. More recently, production of the 737 MAX was disrupted again by a machinists' strike on the West Coast that lasted nearly two months.
Boeing CEO Kelly Ortberg emphasized that the layoffs were not a direct result of the strike but rather due to overstaffing. "As previously announced, we are adjusting our workforce levels to align with our financial reality," Ortberg said.
The company has also faced scrutiny following several safety incidents, including a panel that blew off the fuselage of an Alaska Airlines flight in January. These events have compounded financial pressures as Boeing works to regain public trust and improve its safety culture.
The workforce reductions will impact employees across Boeing's commercial, defense, and global services divisions. Notices filed with state employment agencies indicate that the initial round of layoffs, beginning in November, affected approximately 3,500 employees nationwide.
Despite the challenging circumstances, Boeing has pledged to support affected workers. "We are committed to ensuring our employees have the resources they need during this difficult time," a company spokesperson said.
Washington state, home to more than 60,000 Boeing employees, will bear a significant portion of the cuts. The layoffs in California, affecting over 500 workers, mark another substantial reduction. Employees in engineering, recruiting, and analytical roles have been among those affected.
Boeing's financial troubles began well before the COVID-19 pandemic, with the fallout from the 737 MAX crashes significantly damaging its reputation and bottom line. Regulatory scrutiny intensified as the company attempted to address safety lapses, leading to production delays and a temporary halt in deliveries.
While Boeing has made strides in returning the 737 MAX to service, the company continues to face headwinds, including supply chain disruptions and reduced demand for commercial aircraft. These challenges have prompted Boeing to reevaluate its operations and workforce strategy.
