WASHINGTON (Reuters) – Boeing announced on Wednesday (13) that it has begun issuing layoff notices to workers affected by the plane maker’s plan to cut 17,000 jobs or 10% of its global workforce.
U.S. employees who receive the notices this week will remain on Boeing’s payroll until January to comply with 60-day notice requirements before their employment ends.
“As previously announced, we are adjusting our workforce levels to align with our financial realities and a more focused set of priorities,” Boeing said in a statement. “We are committed to ensuring our employees are supported during this challenging time.”
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The warnings come as Boeing, under new Chief Executive Kelly Ortberg, is trying to resume production of the 737 MAX, the company’s best-selling plane, after a weeks-long strike on the U.S. West Coast halted the production of most of the company’s commercial jets.
The MAX is a key revenue generator for Boeing, which raised more than $24 billion in late October to shore up its finances and protect its investment-grade rating.
But the mass layoffs, combined with spending and travel cuts, are weighing on the company’s employee morale, two sources familiar with the matter told Reuters. On Wednesday, many employees were still waiting for a phone call or Zoom meeting with a boss to find out if they would lose their jobs, the sources said.
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