Boeing has initiated layoffs that will impact 2,199 workers in Washington state. The move is part of broader plans to downsize its workforce by about 17,000 amid persistent financial and operational struggles.
According to a notice filed with Washington's Employment Security Department, the aerospace company will continue implementing job cuts nationwide, raising concerns about its trajectory in a highly competitive industry.
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The reductions are part of a strategy announced in October when Boeing revealed plans to reduce its workforce by 10%. The layoffs affect multiple divisions - commercial airplanes, defense and global services - and span facilities in several states, including Missouri, Arizona, South Carolina and its base in Arlington, Virginia.
According to The Seattle Times, these cuts mark one of the largest workforce adjustments Boeing has made in recent years. Before the layoffs, Boeing employed around 66,000 workers in Washington.
Over 400 Society of Professional Engineering Employees in Aerospace (SPEEA) members received notices last week, although these employees will remain on payroll until mid-January.
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The Machinists' union also confirmed that many unionized workers recently returned to assembly lines following a nearly two-month strike. In an October call with analysts, Boeing CEO Kelly Ortberg said that the Machinists' strike wasn't the primary factor driving layoffs but was instead tied to overstaffing.
He highlighted challenges in scaling production, particularly for the 737 MAX, under Federal Aviation Administration (FAA) restrictions limiting production to 38 planes per month - a target Boeing has yet to achieve consistently.
According to the FAA, the company's compliance issues contributed to delays in ramping up production. A recent incident involving a detached door plug in flight on an Alaska Airlines plane further eroded confidence in Boeing's safety standards.
Financially, Boeing continues to face turbulence. The company reported a $6.1 billion loss for the third quarter of 2024, citing slower production rates and supply chain disruptions. According to Travel And Tour World, demand for new aircraft remains 15% below pre-pandemic levels, compounding recovery challenges.
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Still, some experts see the layoffs as a calculated step. In an interview on KIRO 7, Scott Hamilton said, "Boeing is bloated and needs to lose some weight - and these cuts will be tough but necessary."
However, critics argue that Boeing's aggressive downsizing will do more harm than good. Ray Goforth, the Executive Director of the Society of Professional Engineering Employees in Aerospace (SPEEA), said in a statement: "Rather than resolve the IAM strike and focus the company's resources on rebuilding the trust of regulators and customers, Boeing leadership has decided to harm every aspect of the company."
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