Boeing announced on Wednesday that it will begin issuing layoff notices this week to employees affected by the company’s plan to reduce its global workforce by 17,000 jobs, or approximately 10%. US employees who receive these notices will remain on the Boeing payroll until January, in accordance with federal law, which mandates a 60-day notice period.
“We are adjusting our workforce levels to align with our financial reality and a more focused set of priorities,” Boeing said, reaffirming its commitment to supporting employees through this difficult transition.
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The layoff notices come as Boeing, under new CEO Kelly Ortberg, works to restart production of its best-selling 737 MAX. Production had been recently halted after a weeks-long strike by over 33,000 US West Coast workers disrupted the output of most of its commercial jets.
The mid-November issuance of Worker Adjustment and Retraining Notifications (WARN) had been widely anticipated.
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The 737 MAX, a key revenue driver for Boeing, helped the company secure over $24 billion in late October, stabilizing its finances and maintaining its investment-grade rating amid concerns from rating agencies.
This year has been challenging for Boeing, beginning with an incident on January 5 when a door panel blew off a 737 MAX mid-flight. Since then, the company has faced a series of setbacks, including the resignation of its CEO, slowed production due to regulatory scrutiny of its safety practices, and a strike by its largest union starting on September 13.
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