Boeing to lay off more than 2,500 US workers as part of massive cuts – nationwide
Boeing will lay off more than 2,500 workers in the US states of Washington, Oregon, South Carolina and Missouri, according to documents required on Monday and a union official, as part of the American plane maker’s plan to cut 17,000 jobs, or 10% of its global workforce.
About 2,200 layoff notices went to workers in Washington and another 220 in South Carolina, the two states where Boeing builds commercial airplanes. Boeing declined to comment on the layoffs Monday.
The aerospace giant began telling affected US workers on Wednesday that they will remain on Boeing’s payroll until Jan. 17, to comply with government requirements to notify employees at least 60 days before terminating employment.
The news that Boeing will post a Workforce Adjustment and Retraining Notice (WARN) in mid-November was widely expected. Another round is expected in December. Boeing may also use layoffs, special hiring and sales of subsidiaries to reduce staffing.
Boeing shares gained 2.6% to close at $143.87 on Monday.
In October, Boeing’s new CEO, Kelly Ortberg, said the company does not intend to “take people out of manufacturing or out of engineering labs.” Industry watchers have been waiting for WARNs for an indication of how the layoffs could affect workers at the company’s key manufacturing facilities.
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However, several hundred engineers and production workers were among those who received pink slips last week.
The Society of Professional Engineering Employees in Aerospace said 438 members of the union at Boeing received layoff notices last week, including 218 engineers and 220 technicians.
The International Association of Machinists and Aerospace Workers (IAM) District Lodge 837 in St. Louis said Boeing has sent notices to 111 members, most of whom made wing parts for the 777X.
Who is being laid off appears to vary between divisions within Boeing, several non-union workers who received WARNs told Reuters.
One engineer at Boeing Defense, Space & Security said all but two or three members of his 12-person team were cleared, while another said he was the only one in his team of about 20 who received a WARN. Both said they provide valuable support to production engineers and designers, but are not considered to be working in production.
The announcements come as Boeing tries to restart production of the best-selling 737 MAX, after a weeks-long strike by more than 33,000 workers on the US West Coast halted production of many of its commercial jets.
Union members voted 59% in favor of a new contract earlier this month, which includes a 38% pay increase over four years, after two previous requests were voted down.
