Continue to push forward with the large-scale layoff plan! Boeing Company (BA.US) will lay off more than 2500 people in four states in the United States.
19/11/2024
GMT Eight
According to documents released by the US federal government on Monday and a union official, Boeing Company (BA.US) will lay off more than 2,500 people in Washington, Oregon, South Carolina, and Missouri, as part of its plan to cut 10% of its workforce. It is reported that nearly 2,200 people in Washington and 220 people in South Carolina have received layoff notices, as these two states are where Boeing Company manufactures commercial aircraft. Boeing Company will begin notifying affected US employees on Wednesday, and they will continue to work for Boeing Company until January 17 next year, in compliance with federal requirements to notify employees at least 60 days before termination of employment.
It is worth mentioning that Boeing Company announced in October its plan to lay off 10% of its workforce, approximately 17,000 people, over the next few months. The company's CEO, Calhoun, told employees that the company must "realign our employee levels to match our financial reality."
Just last week, Boeing Company issued layoff notices to 438 members of the Society of Professional Engineering Employees in Aerospace (SPEEA), including 218 engineers and 220 technical staff. Meanwhile, the International Association of Machinists and Aerospace Workers (IAM) District Lodge 837 stated that Boeing Company issued layoff notices to 111 members of the union, most of whom are responsible for manufacturing wing components for the 777X.
Earlier this month, Boeing Company finally secured support from members of its largest union for a new contract that includes a 38% pay increase over the next four years, ending a seven-week strike. This strike, the first in 16 years, had led to a halt in production of most of Boeing Company's aircraft and further deepened the financial crisis of the struggling aircraft manufacturer.
However, for Boeing Company, restarting production after the strike will still take several weeks. A spokesperson for Boeing Company stated that as workers gradually return to work, the company must assess potential risks, reiterate mechanics' responsibilities and safety requirements, and ensure that all training qualifications are up to date.
Boeing Company's financial report released last month showed that the company's revenue in the third quarter decreased by 1% year-on-year to $17.84 billion, with a net loss of $6.174 billion and NON-GAAP core operating loss of $5.989 billion. The company also raised approximately $21 billion through a large-scale stock issuance at the end of October to address pressure from the strike and credit rating downgrade. Additionally, there are reports that Boeing Company is considering selling some of its aerospace businesses, including the troubled "Starliner" spacecraft and International Space Station operations. Discussions are in the "preliminary stages" and may not come to fruition.