Boeing Issues Layoff Notices, Cutting 10% of Global Workforce Amid Financial Struggles

Boeing has started to issue layoff notices to 17,000 employees, representing 10 per cent of its global workforce, according to a report by Reuters. Employees who receive layoff notices this week will remain on Boeing's payroll until January, in accordance with federal regulations that require a 60-day notice period before terminating employment.The report stated that Boeing's issuance of the Worker Adjustment and Retraining Notification (WARN) in mid-November had been widely anticipated.“As previously announced, we are adjusting our workforce levels to align with our financial reality and a more focused set of priorities. We are committed to ensuring our employees have support during this challenging time,” the report quoted Boeing as saying in a statement.This comes as Boeing's new CEO, Kelly Ortberg, works to revive production of its best-selling 737 MAX, which raised over $24 billion in October. This effort followed a significant setback when more than 33,000 workers on the US West Coast went on strike, disrupting production and severely impacting the output of Boeing's commercial jets.The recent wave of layoffs has taken a toll on employee morale, with many workers anxiously awaiting phone calls or Zoom meetings with their supervisors to learn whether they will lose their jobs, according to the report. These layoffs occur amid a series of ongoing crises at Boeing, starting in January when a door panel blew off a 737 MAX mid-flight. This incident led to the departure of the CEO, an investigation into Boeing's safety culture by regulators, and a union strike that began on September 13, further complicating the company's recovery efforts.The strike concluded on November 5, and Boeing workers' return to the company's Seattle-area assembly lines this week marks a gradual recovery in MAX production. However, the looming layoffs, alongside ongoing cuts to spending and travel, have significantly impacted employee morale at the US plane manufacturer in recent months, according to two sources familiar with the situation, as reported by Reuters.Also Read: AMD Layoffs: Semiconductor Firm Plans To Fire 1,000 Employees; Here's Why