Boeing Lays Off Over 2,000 Employees in Washington

Boeing’s workforce reduction plan hits Washington state hard, with over 2,000 employees receiving layoff notices.

At a Glance

Boeing has laid off 2,199 employees in Washington state as part of a larger plan to cut about 17,000 jobs company-wide.
The layoffs began on November 1, 2024, affecting over 400 members of the Society of Professional Engineering Employees in Aerospace (SPEEA).
Laid-off workers will be paid until mid-January 2025 and receive subsidized health care benefits for up to three months.
The company is working to recover financially after a $6.17 billion loss in the third quarter of 2024.
Boeing is considering a second round of job cuts, with potential notifications in December.

Boeing’s Workforce Reduction in Washington

Boeing, the aerospace giant, has implemented a significant workforce reduction in Washington state, laying off 2,199 employees. This move is part of a broader plan to cut approximately 17,000 jobs company-wide, representing a 10% reduction in its total workforce. The layoffs, which began on November 1, 2024, have particularly impacted members of the Society of Professional Engineering Employees in Aerospace (SPEEA), with over 400 members receiving notices.

The layoffs have affected both professional and technical units within SPEEA. Of the 438 laid-off employees, 218 were from the professional unit, consisting of engineers and scientists, while 220 were from the technical unit, comprising technicians. SPEEA represents around 17,000 Boeing workers across Washington, Oregon, California, and Utah.

Boeing lays off over 2,000 Washington employees https://t.co/GtDYZvTsdX

— KIRO 7 (@KIRO7Seattle) November 18, 2024

Financial Challenges and Company Response

Boeing’s decision to reduce its workforce comes in the wake of significant financial challenges. The company reported a $6.17 billion loss in the third quarter of 2024, following a seven-week strike by 33,000 workers on the US West Coast, which ended on November 5, 2024. The strike concluded with a new pay agreement, increasing salaries by 38%, approved by 58% of the International Association of Machinists and Aerospace Workers (IAM) union members.

“We’re 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.

Boeing CEO Kelly Ortberg emphasized the need to “reset workforce levels” to align with financial realities. The company’s financial losses, totaling $25 billion over five years, are partly due to the MAX jet crashes and a recent door plug blowout incident. These events have led to increased scrutiny and production challenges, with the FAA capping 737 MAX production at 38 planes per month, a target not yet reached due to the strike.

Impact on Employees and Future Outlook

The layoffs have significant implications for affected employees. Those laid off will be paid until mid-January 2025 and receive subsidized health care benefits for up to three months. This measure provides some short-term financial security for the impacted workers.

Boeing’s workforce reduction strategy extends beyond layoffs. The company is also leaving some positions unfilled and focusing hiring on critical business areas. Furthermore, Boeing is considering a second round of job cuts, with potential notifications in December and payroll continuation through mid-February. This ongoing restructuring reflects the company’s efforts to regain financial stability and adapt to current market conditions.

As Boeing navigates these challenging times, the impact on Washington state’s economy and the aerospace industry remains a concern. With approximately 66,000 employees in Washington state, Boeing’s decisions significantly affect the local workforce and economy. The company’s ability to balance financial recovery with maintaining its skilled workforce will be crucial for its future success and the region’s economic stability.