Boeing has begun drastic workforce cuts by issuing over 400 workers employment termination notices.
According to The Seattle Times, more than 400 employees who are members of the Society of Professional Engineering Employees in Aerospace (SPEEA) were given notice on November 1, 2024.
The union confirmed that 438 members were told their services were no longer required as Boeing looks to slash its workforce by 10%, around 17,000 jobs.
The CEO of Boeing, Kelly Ortberg, announced in October 2024, that structural changes to the company were needed that “require tough decisions”.
“We know these decisions will cause difficulty for you, your families and our team, and I sincerely wish we could avoid taking them,” Ortberg said. “However, the state of our business and our future recovery require tough actions.”
The Seattle Times reported that of the 438 employees laid off, 218 are from its professional segment, which includes engineers, and 220 from its technical membership, which includes technicians.
Laid off staff will be paid until mid-January 2025 and subsidized health care benefits for up to three months.
A seven-week strike by Boeing workers ended in November 2024, after 58% of union members voted to approve a new pay deal that will see incomes rise by 38%.
The agreed proposal includes a 38% pay rise over four years, a ratification bonus worth $12,000 and an additional $5,000 payment that can be paid to workers as part of their paycheck or towards individuals’ 401K retirement fund.
Even before strikes began, Boeing was trying to recover from the fallout of an incident in January 2024, when a door plug separated from an Alaska Airlines 737-9 shortly after takeoff.
The incident led to huge questions over Boeing’s safety and quality procedures during the aircraft manufacturing process.
In October 2024, Boeing raised $21 billion in a new public stock offering with plans to use the capital raised for debt repayment, working capital enhancements, capital expenditures, and investments in its subsidiaries.