Boeing
is preparing to issue several thousand layoff notices beginning next month as it moves forward with its cost-cutting initiative to reduce its workforce. The troubled company will cut over 15,000 jobs – a move announced last week by its CEO, Kelly Ortberg.
It comes as the company will delay its highly anticipated 777X program timeline until 2026
. Additionally, the manufacturer has been slammed by the industrial action of some 30,000 machinists for several weeks, specifically affecting production of the 737 MAX family.
Slashing the workforce by 10%
According to Reuters, Boeing will issue Worker Adjustment and Retraining Notifications (WARN), or 60-day notices, in mid-November. Ortberg confirmed on Friday that the company will “reduce the size” of its “total workforce by roughly 10 percent” over the next few months, which is reportedly 17,000 positions. Following receipt of the notices, employees
are expected to leave the company beginning in mid-January.
Photo: The Bold Bureau | Shutterstock
The Seattle Times reported that Boeing will not offer severance pay to any of the affected employees. On Monday, the company presented its formal workforce reduction plan internally to its Commercial Airplanes managers, highlighting which positions will be axed. Since it is illegal to lay off employees on strike, the workers who are members of the International Association of Machinists and Aerospace Workers (IAM) will not be included in the job cuts
.
Read More
“Kill People With No Consequences”: Boeing 737 MAX 8 Disaster Relatives Sound Off In Court Hearing
The judge will reportedly “get a ruling out” as soon as possible.
The news suggests that initial layoffs could include higher-ups, such as engineers, and non-union salaried workers, including vice presidents. Ortberg confirmed that workers in those levels could be affected.
“These reductions will include executives, managers and employees.”
One phase, but two if necessary
The Seattle Times obtained the manufacturer’s “Reduction In Force” presentation on Monday. Details reportedly revealed the criteria that will be used to determine which individuals and work groups will be separated from the company. A timeline indicated that the reductions could occur in two phases.
Photo: Wirestock Creators | Shutterstock
Managers are expected to decide who will be affected by the end of the month. In the first phase, oversight and compliance reviews will reportedly happen between November 13th and 15th. Then, the official layoff notices will be sent out, informing employees that their jobs will end on January 17, 2025, according to The Seattle Times. The second phase will only happen if the first phase does not achieve the 10% reduction target. Should it occur, additional positions will be axed on February 21st.
“The infancy stage”
Boeing had originally planned to furlough some workers prior to Ortberg’s announcement on Friday.
“Based on this decision, we will not proceed with the next cycle of furloughs,” the CEO said.
The planemaker reportedly said affected employees will only be obligated to work for a few weeks after receiving their layoff notice, and they will paid until their separation date. They will also have time over the Thanksgiving and year-end holidays to search for other work. Boeing explained that it is “in the infancy stage” of piecing together its workforce reduction plan, according to The Seattle Times. As such, the timeline dates could be adjusted.
“We will be transparent with you regarding the timing and impact of these steps, and we will be professional and supportive to everyone along the way,” Ortberg explained to employees.
Read Next
Bankruptcy For Boeing? Some Striking Workers Believe It Could Happen
While the manufacturer is facing challenging headwinds, economists believe there is an unlikely chance of Boeing going bankrupt.