Boeing Cuts Global Workforce by 10 Percent, Layoffs to Begin in December
Global Layoffs
The US aviation giant Boeing sent out its first redundancy notifications on Monday as part of a previously announced plan to cut its global workforce by 10 percent. The company intends to cut almost 2,200 jobs in the US state of Washington, which is home to many of its oldest factories.
WARN Notice
Companies in the United States are required by law to submit a "WARN" notice (Worker Adjustment and Retraining Notification) to local authorities 60 days before any layoffs. In its notice, Boeing said it expects to start laying people off permanently starting December 20. A total of 2,199 people will be affected.
Production Quality Problems and Strike
The group has been plagued by production quality problems, and has just endured a strike lasting more than 50 days that paralyzed two crucial factories. The strike, which involved more than 33,000 members of the local branch of the International Association of Machinists (IAM), was negotiating over pay and work conditions.
Global Workforce Reduction
On October 12, Boeing unveiled plans to reduce its global workforce by 10 percent over the coming months, without giving any further details. Boeing’s employees numbered some 170,000 people at the end of last year, with close to 67,000 of them in Washington state, where the company was founded and where it produces its best-selling 737 line of aircraft, along with the 777, 767 and several military planes.
Locations Affected
According to WARN notices on Monday, the aviation giant also intends to lay off 50 staff in Oregon and 63 in Colorado. In South Carolina, where the 787 Dreamliner factory is located, 220 people are expected to lose their jobs in January. Boeing employs thousands of workers across these three locations.
Engineers’ Union
The engineers’ union SPEEA (Society of Professional Engineering Employees in Aerospace) was notified on Thursday evening that 438 of its members were to be laid off, according to a spokesman. The union has more than 19,000 members across the United States, around 16,500 of whom work for Boeing.
Timeline
According to Boeing, most of the employees receiving redundancy notices this week will leave the company in mid-January. Benefits and health insurance will continue to be paid for up to three months after that.
Conclusion
Boeing’s decision to cut its global workforce by 10 percent is a significant move, affecting thousands of employees across the United States. The company’s struggles with production quality problems and the recent strike have likely contributed to this decision. As the aviation industry continues to evolve, it remains to be seen how Boeing will adapt and recover from these challenges.
Frequently Asked Questions
Q: How many jobs will be cut?
A: Almost 2,200 jobs will be cut in Washington state, with additional layoffs in Oregon, Colorado, and South Carolina.
Q: When will the layoffs begin?
A: Layoffs are expected to start in December, with most employees leaving the company in mid-January.
Q: What benefits will be provided to affected employees?
A: Benefits and health insurance will continue to be paid for up to three months after the employee leaves the company.