Boeing starts issuing layoff notices to cut 17,000 jobs, 10% of its workforce
Boeing sending out the Worker Adjustment and Retraining Notification (WARN) in mid-November was widely expected
Boeing is issuing layoff notices to cut 17,000 jobs or 10% of its global workforce, news agency Reuters reported.
The employees receiving the notices this week will stay on the heavily indebted planemaker's payroll till January to comply with federal rules that mandate a 60 days' notice to workers before ending their employment.
Boeing sending out the Worker Adjustment and Retraining Notification (WARN) in mid-November was widely expected, the report read.
“As previously announced, we are adjusting our workforce levels to align with our financial reality and a more focused set of priorities," the report quoted Boeing as saying in a statement. "We are committed to ensuring our employees have support during this challenging time."
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This comes at a time when Boeing's new CEO Kelly Ortberg is trying to revive the production of its highest-selling 737 MAX (It raised more than $24 billion in October) after more than 33,000 US West Coast workers led a huge strike, crippling the output of most of its commercial jets.
The layoffs have weighed heavily on employee morale over the last few months, with many on Wednesday waiting for a phone call or Zoom meeting with a boss to know if they would lose their jobs or not, according to the report.
All of this comes at a time when Boeing has gone from crisis to crisis, starting from January this year when a door panel blew off from a 737 MAX jet in mid-air, its CEO departing afterwards, regulators investigating its safety culture, and also the union strike which started on September 13.
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