Boeing, one of the largest aerospace companies in the world, is preparing to lay off 17,000 employees in the coming weeks. This major decision comes as the company faces significant financial challenges and industry pressures. Both union and non-union workers in Boeing’s commercial aviation division will be affected, with layoffs starting as soon as mid-January. Some employees will receive notices in November, with a second wave expected in December.
Boeing Announces Major Layoffs
The layoffs are part of Boeing’s plan to reduce its workforce by 10%, which will include both engineers and non-engineers. The company is not seeking voluntary departures, meaning the layoffs will be involuntary. This decision has sparked criticism from labor unions, with some calling it “corporate greed.” The International Association of Machinists and Aerospace Workers (IAM) has been particularly vocal, criticizing Boeing for abandoning its workers.
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Boeing has also announced that it will take a $5 billion charge, adding to the challenges the company has faced in recent years, including delays in the production of its 777X jetliner and the discontinuation of its civil 767 freighter production. Acting U.S. Labor Secretary Julie Su is intervening in the situation, meeting with both Boeing and union representatives to encourage negotiations.
The layoffs follow a strike by 33,000 Boeing workers, who have been on strike since mid-September, demanding a 40% wage increase over four years. Boeing’s stock has taken a hit, and concerns are growing within the aerospace industry about the company’s future. Some industry leaders, like Emirates Airline President Tim Clark, have voiced doubts about Boeing’s ability to recover from its ongoing crises.
With Boeing’s cash reserves at just over $10 billion, analysts warn that the company may need to raise additional funds by the end of the year to stay afloat. Some expect Boeing to issue shares to raise up to $15 billion. However, the situation remains tense, as major airlines have billions of dollars in deposits with Boeing, and there is fear of an investment downgrade.
As Boeing faces increasing pressure, both from its workforce and the wider industry, the coming months will be crucial for the company’s future.
