Boeing cuts hundreds of jobs in Washington, California amid workforce reduction plan

Boeing, one of the world's largest aerospace companies, has laid off hundreds of workers in Washington state and California as part of its previously announced plan to cut its workforce by approximately 17,000 jobs, as per Associated Press.

Nearly 400 employees in Washington and over 500 in California were affected by this latest round of layoffs, according to reports on Monday. The aerospace giant had earlier stated it would trim its workforce by 10 per cent in the coming months to address ongoing financial and operational challenges.

‘Result of overstaffing’

The layoffs follow a two-month strike by Boeing machinists, but CEO Kelly Ortberg clarified that the reductions were not related to the strike. “This was a result of overstaffing,” Ortberg said, as quoted by Associated Press.

After announcing plans in October, the company began notifying workers who would be laid off in November. Notices filed with state employment agencies showed the first round of cuts impacted about 3,500 people around the country, The Seattle Times reported.

From engineers and recruiters, to analysts, staff across a series of roles have been impacted by the layoffs, which in turn have affected Boeing’s commercial, defense and global services divisions.

Employees affected in Puget Sound region

According to The Seattle Times report, most of the layoffs have happened in the Puget Sound region, that includes workers from the regions of Seattle, Tukwila, Kent among others.

Boeing has also announced that most of its employees would remain on the payroll for two months, which is, until February 21 for the latest round of lay offs. All these employees are eligible to receive severance pay, career transition services and subsidised health insurance benefits for up to three months, added the aerospace giant.

Headquartered in Arlington, Virginia, Boeing has faced financial difficulties since two crashes of its 737 Max jetliner claimed the lives of 346 people in 2018 and 2019. The company's fortunes and reputation were further damaged in January when a panel detached from the fuselage of an Alaska Airlines plane.