Boeing issues layoff notices with 60-day notice period after debt-ridden planemaker trims 10% of global workforce
- Boeing was expected to send out the Worker Adjustment and Retraining Notification (WARN) in mid-November
Debt-ridden planemaker Boeing said on Wednesday, November 14, that it is issuing layoff notices to workers impacted by a broader plan to cut 17,000 jobs or 10 per cent of its global workforce, starting this week. According to news agency Reuters, US staff receiving the notices this week will stay on Boeing's payroll until January to comply with federal requirements that give workers 60 days' notice before ending their employment.
News that Boeing would send out the Worker Adjustment and Retraining Notification (WARN) in mid-November was widely expected. “As previously announced, we are adjusting our workforce levels to align with our financial reality and a more focused set of priorities," Boeing said in a statement.
"We are committed to ensuring our employees have support during this challenging time." The notices come as Boeing under new CEO Kelly Ortberg is trying to revive production of its strongest-selling 737 MAX, after a crippling weeks-long strike by more than 33,000 US West Coast workers halted output of most of its commercial jets.
The MAX is a key revenue generator for the company which raised more than $24 billion in late October to shore up its shaky finances and protect its investment grade rating following concern from rating agencies.
Also Read: Boeing is making a new offer to the union in hopes of ending a strike now in its second month
Boeing's year-long crisis
Boeing has lurched from crisis to crisis this year, kicking off on January 5 when a door panel blew off a 737 MAX jet in mid-air. Since then, its CEO departed, its production has slowed as regulators investigate its safety culture, and its largest union kicked off the strike on September 13.
The strike ended on November 5, and Boeing's workers' return to the company's Seattle-area assembly lines this week supports a slow revival of MAX production. However, the looming layoffs, combined with cuts to spending and travel, have weighed on employee morale at the US planemaker over the last few months, two sources familiar with the matter told Reuters.
On Wednesday, many employees were still waiting for a phone call or Zoom meeting with a boss to learn if they would lose their jobs, sources told Reuters, who spoke anonymously because they weren't authorized to speak with the media.
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Business NewsCompaniesNewsBoeing issues layoff notices with 60-day notice period after debt-ridden planemaker trims 10% of global workforce
First Published:14 Nov 2024, 03:50 PM IST
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