Boeing has recently issued layoff notices to more than 400 members of its professional aerospace labor union, part of a larger plan to downsize its workforce as the company grapples with financial difficulties, regulatory setbacks and an eight-week machinists’ union strike.
The layoff notices were sent last week to members of the Society of Professional Engineering Employees in Aerospace (SPEEA), according to a report by The Seattle Times. The affected employees will remain on Boeing’s payroll until mid-January.
In October, Boeing announced a significant workforce reduction, planning to cut 10 per cent of its total staff, which amounts to approximately 17,000 jobs. CEO Kelly Ortberg emphasised the need to “reset workforce levels to align with our financial reality.”
The layoffs have impacted 438 members of SPEEA, a union representing roughly 17,000 Boeing employees primarily located in Washington, with some members based in Oregon, California, and Utah.
Of the 438 employees facing layoffs, 218 are part of SPEEA’s professional unit, which includes roles such as engineers and scientists. The remaining employees belong to the technical unit, covering positions like analysts, planners, technicians, and skilled tradespeople.
Affected workers who qualify will be offered career transition support and access to subsidized healthcare benefits for up to three months. In addition, they will receive severance packages, generally calculated at one week of pay for each year of service.
Earlier this month, Boeing’s unionized machinists returned to work after an eight-week strike, which had a considerable impact on the company’s financial situation. However, CEO Kelly Ortberg clarified in an October call with analysts that the strike was not the direct cause of the layoffs. He explained that the decision to downsize was driven by overstaffing issues rather than recent labor disruptions.
