Boeing (BA.US) to Cut More Than 2,500 Jobs in Four States
1min read According to a document released by the U.S. federal government on Monday and a union official, Boeing (BA.US) will lay off more than 2,500 workers in Washington, Oregon, South Carolina and Missouri as part of its plan to cut 10% of its workforce, which is heavily indebted.
It is reported that nearly 2,200 workers in Washington and 220 in South Carolina have received layoff notices, while the two states are where Boeing makes its commercial aircraft. Boeing will begin notifying affected U.S. employees on Wednesday that they will continue to work for the company until Jan. 17, in compliance with federal requirements that employers give employees at least 60 days notice before ending employment.
Boeing had said in October that it planned to lay off 10% of its workforce, or about 17,000 people, in the coming months. The company's chief executive, Dave Calhoun, told employees that the company needed to "realign our workforce to match our financial reality."
Last week, Boeing informed 438 members of the Society of Professional Engineering Employees Association, including 218 engineers and 220 technicians, that they were being laid off. Meanwhile, the International Association of Machinists and Aerospace Workers Local 837 said that Boeing informed 111 members of the union, most of whom worked on the wings of the 777X jet.
Earlier this month, Boeing's new contract, which raises pay 38% over the next four years, finally won the support of its largest union, ending a seven-week strike that had idled most of the company's aircraft and deepened the financial crisis at the already troubled aircraft maker.
However, restarting production after the strike will take several weeks, a Boeing spokesperson said. As workers return gradually, the company must assess potential hazards, reiterate the duties and safety requirements of machinists and ensure that all training qualifications are up to date.
Boeing reported in its earnings last month that its third-quarter revenue fell 1% year-on-year to $17.84 billion, and its net loss was $6.17 billion, while its non-GAAP core operating loss was $5.989 billion. The company also raised about $21 billion through a massive stock offering in late October to help weather the strike and credit rating downgrade. In addition, it is reported that Boeing is considering selling some of its aerospace businesses, including its troubled Starliner spaceship and International Space Station business. The discussions are "at an early stage" and may not be realized.