Boeing Layoffs: Aerospace Firm Draft Notices To Fire 17,000 Employees

Boeing Layoffs: A Boeing spokesperson stated that the company had informed managers about plans for a 10 per cent reduction in its commercial unit, affecting union and non-union workers

Thousands of Boeing employees are expected to receive layoff notices in the coming weeks, according to a Reuters report citing union and industry sources. This update follows a visit by a senior US official to Seattle aimed at addressing ongoing strike concerns, as a major airline raised alarms about the increasing turmoil facing the planemaker.

The aerospace giant plans to issue 60-day layoff notices to thousands of workers next month, particularly affecting those in its commercial aviation division. According to a source familiar with the situation in the report, this indicates that many employees could be leaving the company by mid-January.

The source also mentioned in the report that a second wave of layoff notices might be announced in December. 

The report states that a spokesperson for the Society of Professional Engineering Employees in Aerospace, which represents Boeing engineers, confirmed that the company notified the union on Monday about issuing 60-day notices to its members on November 15.

A Boeing spokesperson stated that the company had informed managers about plans for a 10 per cent reduction in its commercial unit, affecting union and non-union workers. The spokesperson clarified that the striking IAM employees are not currently impacted by these changes.

Brian Bryant, the international president of the IAM, criticised the job cut plan, calling it as "corporate greed at its worst." He remarked, “Boeing just turned its back on 17,000 of its own workers – the same people who carried Boeing through crisis after crisis, year after year.”

This situation has prompted the first in-person intervention from Acting US Labor Secretary Julie Su following Boeing's announcement of plans to cut 17,000 jobs and incur $5 billion in charges, marking a continued period of turmoil for the company.

“Acting Secretary Su is meeting with both parties today to assess the situation and encourage progress in the bargaining process,” a Department of Labor spokesperson stated on Monday.

While Su has previously engaged with Boeing and the union representing striking West Coast factory workers, this marks her first in-person meeting with both sides.

The International Association of Machinists and Aerospace Workers (IAM) reported that its lead negotiator, Jon Holden, briefed Su on the current negotiations, emphasising the union's commitment to securing a contract that recognises its members' skills and dedication.

Neither Boeing nor a White House spokesperson commented on Su's visit.

Approximately 33,000 workers have been on strike since September 13, demanding a 40 per cent wage increase over four years.

Sources informed Reuters that Boeing intends to avoid voluntary departures to minimise severance costs and retain critical skills, relying exclusively on involuntary layoffs. Competitors are actively recruiting from a limited labour pool to alleviate pressure on aerospace supply chains.

"The trick will be not losing the 10 per cent of people you want to keep, which is even more important than usual in the post pandemic skill shortage environment," said Agency Partners analyst Nick Cunningham.