Boeing to Lay Off Over 2,500 Workers in Restructuring Effort as Part of 17,000-Job Cut Plan

boeing layoffs: Boeing (BA.N) is laying off more than 2,500 workers across several U.S. states, including Washington, Oregon, South Carolina, and Missouri, as part of a broader initiative to cut 17,000 jobs, or 10% of its global workforce. The aerospace giant’s plan is a response to mounting financial pressures and ongoing restructuring efforts to reduce its debt burden.

Layoffs Hit Key Boeing Manufacturing Hubs

The company’s commercial airplane divisions in Washington and South Carolina will see the largest cuts. Nearly 2,200 workers in Washington, the state where Boeing builds commercial airliners, are set to lose their jobs, along with another 220 in South Carolina. The layoffs come as part of Boeing’s effort to streamline operations and maintain its competitive edge in a challenging market.

Boeing declined to comment on the layoffs when approached by the media but has confirmed that affected employees will remain on the payroll until January 17 to comply with federal Worker Adjustment and Retraining Notification (WARN) laws, which mandate that workers be given at least 60 days’ notice prior to termination.

Union Response and Affected Workers

Union representatives have confirmed that a significant number of engineers and technicians are among those impacted. The Society of Professional Engineering Employees in Aerospace reported that 438 of its members at Boeing received layoff notices, including 218 engineers and 220 technicians. In addition, the International Association of Machinists and Aerospace Workers (IAM) District Lodge 837 in St. Louis stated that 111 of its members were affected, most of whom worked on wing components for the 777X.

Workers in other parts of the company, including Boeing Defense, Space & Security, have also been impacted, with some departments losing nearly entire teams. For example, one engineer in the division noted that only two or three members of a 12-person team remained, while another worker described being the only member of her 20-person team to receive a WARN notice, despite their role in supporting production and design engineers.

Ongoing Restructuring Efforts

These layoffs are part of a larger restructuring plan initiated by Boeing’s new CEO, Kelly Ortberg, who took over in October. In a statement at the time, Ortberg emphasized that Boeing’s intention was not to reduce production or cut its engineering workforce. However, several hundred engineers and production workers, primarily non-union employees, were among those affected by the initial wave of layoffs. The company’s restructuring plan also includes attrition, selective hiring, and the potential sale of non-core subsidiaries to reduce its global workforce.

This announcement comes as Boeing is working to ramp up production of its 737 MAX, which has faced delays due to a weeks-long strike by over 33,000 West Coast workers. With production at a standstill for some time, the company has faced challenges in meeting customer demand, further intensifying the pressure on its operations and workforce.

Boeing’s Stock Response and Future Outlook

Despite the layoffs and ongoing financial strain, Boeing’s stock saw a 2.6% increase, closing at $143.87 on Monday. The rise in stock price may indicate investor optimism that the company’s restructuring efforts will eventually stabilize its operations. However, with a significant portion of Boeing’s workforce being laid off, analysts will continue to closely monitor the company’s ability to recover and maintain its position in the competitive aerospace market.

Boeing’s restructuring plan is ongoing, and additional rounds of layoffs are expected in December. For now, the company is focused on stabilizing production and managing its workforce reduction efforts, which are crucial for navigating a challenging financial landscape.