Boeing Lays Off 438 Labor Union Members Amid Broader Workforce Reductions.
SEATTLE, WA – Boeing has issued layoff notices to 438 members of the Society of Professional Engineering Employees in Aerospace (SPEEA) as part of a broader effort to reduce its global workforce by 10%. The layoffs, which affect both professional and technical workers, are part of a company-wide reduction that will see approximately 17,000 jobs cut across Boeing’s commercial, defense, and global services divisions.
The job cuts were first announced in October, with Boeing beginning to notify affected employees on Wednesday. Those who received layoff notices this week will remain on the payroll through mid-January. Eligible employees will receive career transition services and subsidized health care benefits for up to three months. Additionally, severance pay will be provided, typically amounting to one week of pay for every year of service.
The layoffs come as Boeing continues to navigate financial challenges and a recent labor union strike that halted production of several key aircraft models. The company has been working to align its workforce levels with its financial reality and a more focused set of priorities, according to a statement from Boeing. SPEEA, which represents 17,000 Boeing employees primarily based in Washington, with some members in Oregon, California, and Utah, has arranged joint meetings next week with representatives from the Washington Department of Employment Security. These meetings aim to help the laid-off members understand their rights under union contracts and navigate the process of applying for unemployment benefits.
Boeing Lays Off 438 Labor Union Members Amid Broader Workforce Reductions.
The impact of the layoffs on Boeing’s 66,000-person workforce in Washington remains unclear. However, according to Fox Business, the company is considering a second round of job cuts if necessary, with those workers potentially being notified in December and remaining on the payroll through mid-February. Boeing’s decision to reduce its workforce by 10% is part of a broader strategy to address ongoing financial struggles and production challenges. The company has faced a series of crises this year, including a door panel incident on a 737 MAX jet, regulatory investigations into its safety culture, and a significant labor strike that began in September and ended in early November.
The strike, which involved more than 33,000 U.S. West Coast workers, significantly impacted Boeing’s production capabilities, particularly for its 737 MAX, 777, and 767 models. The end of the strike has allowed Boeing to slowly resume production, but the looming layoffs and cuts to spending and travel have weighed heavily on employee morale. Boeing’s new CEO, Kelly Ortberg, who took over in August, has emphasized the need for structural changes to ensure the company remains competitive and can deliver for its customers over the long term. The company has also announced the end of production for its 767 aircraft in 2027 and delayed the rollout of its new 777X model to 2026 due to the discovery of a defective part.
As Boeing continues to navigate these challenges, the company remains committed to supporting its employees during this difficult time, providing resources and assistance to those affected by the layoffs.