Boeing announced on Wednesday that it will begin sending layoff warnings to workers affected by the chronically indebted planemaker’s bigger plan to cut 17,000 positions, or 10% of its global workforce.
Employees in the United States who received notifications this week will remain on Boeing’s payroll until January in order to comply with federal regulations that require workers to give 60 days’ notice before leaving their jobs. The announcement that Boeing would send out the Worker Adjustment and Retraining Notification (WARN) in mid-November was widely expected.
“As previously announced, we are adjusting our workforce levels to align with our financial reality and a more focused set of priorities,” the aerospace company said in a statement. “We are committed to ensuring our employees have support during this challenging time.”
The notifications come as Boeing’s new CEO, Kelly Ortberg, attempts to restart production of its best-selling 737 MAX after a debilitating weeks-long strike by more than 33,000 West Coast workers halted manufacturing of the majority of its commercial jets.
The MAX is a crucial revenue source for the business, which raised over $24 billion in late October to shore up its weak finances and protect its investment-grade status after rating agencies expressed concerns.
Boeing has lurched from crisis to crisis this year, beginning on January 5 when a door panel ripped off a 737 MAX jet in midair. Since then, its CEO has resigned, production has halted as regulators probe its safety culture, and its largest union began the strike on September 13.
The end of the strike on November 5 and the return of Boeing workers to the company’s Seattle-area assembly lines this week all point to a slow resurgence in MAX production.
However, imminent layoffs, combined with spending and travel limitations, have dragged on employee morale at the U.S. planemaker in recent months, according to two persons familiar with the situation. On Wednesday, many employees were still waiting for a phone call or Zoom meeting with their supervisor to find out if they would be laid off, according to individuals who spoke on the condition of anonymity because they were not permitted to speak with the media.