Boeing Begins Layoffs as Part of Plan to Reduce Workforce by 10%

Boeing has started notifying employees of impending layoffs as part of its plan to cut 10% of its global workforce.

The first round of layoffs will affect 2,200 workers in Washington State, with most departing the company by mid-January. These employees will receive severance packages along with three months of health coverage.

In compliance with U.S. labor laws, companies must provide local authorities with a 60-day notice before proceeding with mass layoffs. According to a document released by the Washington State Employment Security Department, Boeing plans to lay off 2,199 employees in the region starting December 20.

The layoffs come on the heels of a 50-day strike by over 33,000 members of the local chapter of the International Association of Machinists (IAM), which shut down two key Boeing plants near Seattle. These facilities are responsible for assembling the 737, 777, and 767 models, as well as several military programs.

Boeing, which had a global workforce of 170,688 employees as of December 31, 2023, announced on October 12 its intention to reduce its headcount by 10% to align with its financial realities and new priorities.

“As previously stated, we are adjusting our workforce levels to better align with our financial situation and new priorities,” the company told various media outlets.

Boeing was founded in Washington in July 1926, making the state a historic hub for its operations. The company’s recent decision to reduce staffing underscores the challenging conditions it faces amid ongoing economic pressures and labor disputes.