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Aircraft manufacturer Boeing has sent the first layoff notifications following its plan to reduce its global workforce by 10%, which affects nearly 2,200 people in Washington state alone.
American companies must send so-called WARN (Worker adjustment and retraining notification) declarations to local authorities sixty days before any dismissal.
The group, which is experiencing problems with the quality of its production and which has just been affected by a strike of more than 50 days which paralyzed two crucial factories, announced on October 12 its intention to reduce its global workforce by 10% in coming months, without further details.
As of December 31, 2023, it employed 170,688 people.
According to a document made public Monday by the Washington State Employment Security Service, the American aircraft manufacturer has decided to lay off 2,199 people starting December 20.
As of December 31, 2023, it employed 66,797 people in this state where it was founded in July 1926 and where the assembly lines for the 737 are located in Renton – its best-selling aircraft –, the 777, the 767 and of several military programs in Everett.
Strike
These two factories, located near Seattle, were blocked by the strike of more than 33,000 members of the local section of the machinists’ union (IAM) in the context of negotiations for the new social agreement.
As we previously announced, we are adjusting the level of our workforce to align with our financial reality and our new priorities, the group told AFP.
According to Boeing, most employees receiving layoff notices this week will leave Boeing in mid-January, with benefits and health insurance for three months.
Furthermore, according to WARN statements published during the day on Monday, the aeronautics giant intends to lay off 50 employees in Oregon (workforce of 1,282 people at the end of 2023) and 63 in Colorado ( workforce of 1,574 people at the end of 2023).
No information regarding three states
In South Carolina (nearly 7,900 employees at the end of 2023), where the 787 Dreamliner factory is located, 220 people will lose their jobs as of January 17.
No information had yet been revealed regarding three states where the group is very present: Missouri (nearly 17,000 employees), California (14,400) and Texas (nearly 7,100).
The engineers’ union SPEEA (Society of Professional Engineering Employees in Aerospace) was warned Thursday evening that 438 of its members would be laid off, according to a spokesperson.
It has more than 19,000 members in the United States, of which approximately 16,500 work at Boeing (Washington, Oregon, California and Utah).
Welcome to our interview on the recent layoff notifications from Boeing. Firstly, could you please provide us with some insights into the impact of the company’s decision to reduce its global workforce by 10% on the affected employees and their families? How do you think this will affect the overall production quality and efficiency of the company in the long run?
Secondly, discussing the importance of providing advance notice to local authorities as required by law, what are some challenges that companies like Boeing face in this regard? Do you believe there should be any changes made to these regulations to better support businesses during times of economic uncertainty?
Moving on to the issue of strikes, what are your thoughts on the role they play in industry-wide negotiations? Do you feel that the current strike by the machinists’ union was justifiable or could it have been resolved differently? Lastly, what are some of the future challenges that Boeing may face in terms of workforce management and remaining competitive in the global aerospace market?
