Boeing Initiates Layoff Process... Affecting 17,000 Employees

American aircraft manufacturer Boeing has initiated a layoff process affecting approximately 17,000 employees, equivalent to 10% of its total workforce.

According to Fox Business on the 14th (local time), Boeing plans to deliver layoff notices to the affected employees starting this week.

Boeing's total workforce is about 170,000, with 17,000 targeted for layoffs. Employees who receive layoff notices will continue to be paid until January next year to meet federal requirements that mandate notifying workers 60 days prior to employment termination.

In a statement, Boeing said, "As previously announced, we are adjusting our workforce in line with financial conditions and priorities," adding, "We are doing our best to ensure employees receive support during these difficult times."

Boeing faced a crisis earlier this year when parts of the fuselage of the 737 Max 9 passenger aircraft fell off during flight, leading to a series of accidents. Subsequently, the CEO resigned, regulatory investigations began, production was delayed, and a strike further disrupted aircraft production and delivery. Approximately 33,000 Boeing factory workers in Washington, Oregon, and California went on strike from September 13 demanding wage increases and other benefits, ending the strike earlier this month.

Boeing is working to resume production of the 737 Max, its best-selling model and main source of revenue, following the union strike.

Fox Business reported that Boeing plans to complete the current order of 29 aircraft and then end production of the 767 passenger aircraft in 2027.