Boeing has issued layoff notices to more than 400 members of a specialized aerospace union as part of a broader workforce reduction plan. The company is grappling with financial and regulatory challenges, compounded by an eight-week machinists’ union strike.
According to the Seattle Times, Boeing informed members of the Society of Professional Engineering Employees in Aerospace (SPEEA) about the layoffs on Saturday. These employees will continue to receive pay until mid-January.
SPEEA reported that 438 union members were affected by the layoffs. Of these, 218 are part of SPEEA’s professional unit, which includes engineers and scientists.
The remaining 220 employees work in the technical department, comprising analysts, planners, technicians, and skilled tradespeople.
Affected employees will receive career transition services and health care benefits for up to three months. They will also be provided severance pay, typically equivalent to one week’s salary for each year of service.
In October, Boeing announced plans to cut approximately 17,000 jobs, representing 10% of its workforce, over the coming months.
CEO Kelly Ortberg stated that the company is adjusting workforce levels to align with its financial realities. After the prolonged strike, the machinists’ union returned to work earlier this month.
While the strike strained Boeing’s finances, Ortberg emphasized that the layoffs were primarily due to workforce overcapacity rather than the strike itself.
Since a fuselage panel detonated on an Alaska Airlines passenger aircraft in January, Boeing has faced mounting financial and regulatory pressures. Production rates have slowed, and the Federal Aviation Administration (FAA) has restricted Boeing to a monthly production rate of 38 for the 737 MAX—a target the company has yet to meet. Boeing’s stock closed 1.48% higher at $140.19.
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