Nine days after settling a strike that cost the company billions, airplane manufacturer Boeing announced that it plans to cut 10% of its workforce and will start sending out layoff notices this week.
In a statement Wednesday, Boeing said it would follow through with expected layoffs, hoping the cuts will help the company adjust to new financial realities.
“As previously announced, we are adjusting our workforce levels to align with our financial reality and a more focused set of priorities. We are committed to ensuring our employees have support during this challenging time,” the company said in a statement.
Boeing said layoff notices would go out this week, affecting around 17,000 employees or 10% of its workforce.
The laid-off employees will remain on company payroll until early next year to comply with federal regulations requiring 60 days notice for mass layoffs at companies with more than 100 employees.
While layoffs were expected, the announcement will hurt Boeing employees’ spirits after securing a new contract after a seven-week strike. The new deal provides for a 38% wage increase and a $12,000 signing bonus.
The strike, which lasted from Sept. 13 to Nov. 4, crippled jet production and seriously hurt Boeing’s bottom line by nearly $150 million daily.
Some news outlets reported in mid-October, while the strike was ongoing, that Boeing would announce layoffs soon.
• Vaughn Cockayne can be reached at vcockayne@washingtontimes.com.
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