Boeing to Lay Off 2,500 Employees at Washington and South Carolina Facilities

As Part of Workforce Reduction, 17,000 Employees Cut, Representing 10% of Total Staff

U.S. aircraft manufacturer Boeing has decided to lay off more than 2,500 employees at its facilities in Washington, South Carolina, among other locations. This is part of a broader measure to reduce 17,000 employees, which accounts for 10% of its total workforce, amid management difficulties caused by aircraft manufacturing defects and union strikes.

According to major foreign media on the 18th (local time), recently, Boeing sent 2,200 and 220 layoff notices to its Washington and South Carolina facilities, respectively. These two state facilities produce Boeing's commercial passenger aircraft. Boeing informed those targeted for layoffs that "Boeing salaries will be paid until January 17 of next year," due to federal regulations requiring notification to employees 60 days before termination of employment. Boeing is also expected to continue layoffs next month.

Last October, Kelly Otberg, the newly appointed Boeing CEO, stated that there were "no plans to lay off production or engineering research staff." However, it has been reported that hundreds of engineers and production workers are included among those laid off. According to the Society of Professional Engineering Employees in Aerospace (SPEEA), 438 Boeing union members received layoff notices last week, including 218 engineers and 220 technicians. Additionally, according to District 837 of the International Association of Machinists and Aerospace Workers (IAM), Boeing sent layoff notices to 111 union members, most of whom are employees involved in manufacturing wing parts for the 777X.

This reduction is part of Boeing's decision last week to lay off 17,000 employees, which is 10% of its approximately 170,000 total workforce. Boeing is facing severe management difficulties. In January, a structural defect incident occurred where part of the fuselage of the 737 Max 9 passenger aircraft detached during flight. To make matters worse, production lines were halted due to strikes, causing delays in the manufacturing and delivery of aircraft such as the 737 Max. Workers at Boeing plants in Washington, Oregon, and California, totaling 33,000, went on strike from September demanding wage increases. The strike, which lasted over seven weeks, ended only after agreeing to a 38% wage increase over four years earlier this month.