Boeing announced on Wednesday that it would begin issuing layoff notices to employees impacted by a plan to reduce its global workforce by 10%, equivalent to about 17,000 jobs.
U.S.-based employees receiving these notifications will remain on the payroll until January, in compliance with federal requirements mandating 60 days' notice before job terminations.
Boeing had previously signaled that the Worker Adjustment and Retraining Notification (WARN) notices would be issued mid-November.
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The job cuts align with Boeing's strategy to manage its significant debt while focusing on core business priorities.
"We are adjusting our workforce to better reflect our financial reality and strategic focus," Boeing stated, emphasizing its commitment to supporting employees through this challenging transition.
These layoffs come as Boeing works under the leadership of CEO Kelly Ortberg to resume production of its popular 737 MAX. The planemaker's operations were disrupted by a six-week strike involving over 33,000 West Coast employees, halting the production of key commercial aircraft models.
The 737 MAX, a critical revenue driver, became even more essential to Boeing after it secured over $24 billion in late October to stabilize its finances and protect its investment-grade rating amidst rating agency concerns.
Boeing has had a turbulent year, beginning with a January incident in which a 737 MAX’s door panel detached mid-flight. Since then, Boeing has faced regulatory scrutiny over its safety protocols, and its largest union began a strike in September.
The recent conclusion of the strike on November 5 has allowed production to restart gradually, with Seattle-area workers returning to the assembly lines.
Nonetheless, according to sources familiar with the matter, impending layoffs, budget cuts, and travel reductions have affected morale.
