[US] Boeing begins drastic workforce cuts

More than 400 members of Boeing’s professional aerospace labour union have received layoff notices as plans to slash thousands of jobs get underway, CityNews reports.

In recent times Boeing has faced financial and regulatory trouble and an eight-week strike by its machinists’ union, leaving the US aerospace and defence manufacturer struggling.

Last week members of the Society of Professional Engineering Employees in Aerospace (SPEEA) received their pink slips, according to The Seattle Times. The laid-off workers will reportedly remain on the payroll until mid-January.

In October, Boeing announced plans to cut 10 per cent of its workforce (around 17,000 jobs) in the coming months. Boeing CEO Kelly Ortberg told employees that the company must “reset its workforce levels to align with our financial reality.”

SPEEA said the cuts had affected 438 members. The union’s local chapter has 17,000 Boeing employees; largely based in Washington, with some in Oregon, California and Utah.

Of those 438 workers, 218 are members of SPEEA’s professional unit, which includes engineers and scientists. The remainder are members of the technical unit, including analysts, planners, technicians and skilled tradespeople.

Eligible employees will be provided with career transition services and subsidised health care benefits for up to three months. In addition, these workers will receive severance, typically about one week of pay for every year of service.

Boeing’s unionised Machinists started returning to work earlier this month after the strike, which strained Boeing’s finances. However, during an October call with analysts Mr Ortberg reportedly said that it did not cause the layoffs. He described them as a result of overstaffing.

Boeing has been in financial and regulatory trouble since a panel blew off the fuselage of an Alaska Airlines plane in January. Production rates dramatically slowed and the Federal Aviation Administration capped production of the 737 MAX at 38 planes per month. Boeing has yet to reach that threshold.

Source: CityNews

(Links and quote via original reporting)

More than 400 members of Boeing’s professional aerospace labour union have received layoff notices as plans to slash thousands of jobs get underway, CityNews reports.

In recent times Boeing has faced financial and regulatory trouble and an eight-week strike by its machinists’ union, leaving the US aerospace and defence manufacturer struggling.

Last week members of the Society of Professional Engineering Employees in Aerospace (SPEEA) received their pink slips, according to The Seattle Times. The laid-off workers will reportedly remain on the payroll until mid-January.

In October, Boeing announced plans to cut 10 per cent of its workforce (around 17,000 jobs) in the coming months. Boeing CEO Kelly Ortberg told employees that the company must “reset its workforce levels to align with our financial reality.”

SPEEA said the cuts had affected 438 members. The union’s local chapter has 17,000 Boeing employees; largely based in Washington, with some in Oregon, California and Utah.

Of those 438 workers, 218 are members of SPEEA’s professional unit, which includes engineers and scientists. The remainder are members of the technical unit, including analysts, planners, technicians and skilled tradespeople.

Eligible employees will be provided with career transition services and subsidised health care benefits for up to three months. In addition, these workers will receive severance, typically about one week of pay for every year of service.

Boeing’s unionised Machinists started returning to work earlier this month after the strike, which strained Boeing’s finances. However, during an October call with analysts Mr Ortberg reportedly said that it did not cause the layoffs. He described them as a result of overstaffing.

Boeing has been in financial and regulatory trouble since a panel blew off the fuselage of an Alaska Airlines plane in January. Production rates dramatically slowed and the Federal Aviation Administration capped production of the 737 MAX at 38 planes per month. Boeing has yet to reach that threshold.

Source: CityNews

(Links and quote via original reporting)