Boeing, one of the largest aircraft manufacturers, is issuing layoff notices this week as part of its plan to cut 17,000 jobs, which marks a 10 per cent of its global workforce, as per reports.
This reduction in the work force comes amid the company certain facing challenges such as financial strain, production delays, and labour unrest.
Layoff Details and Employee Reactions
As per reports, employees in the U.S. who receive these layoff notices this week will remain on Boeing's payroll until January. This is in accordance with the federal regulations that require companies to provide a 60-day notice before employment termination.
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Financial Challenges
This layoff plan follows the appointment of new CEO Kelly Ortberg,.
This also comes to the focal point that the new ceo is focused on reviving the production of the company’s highest-selling 737 MAX aircraft. The 737 MAX is seen as crucial aircraft for Boeing’s revenue. Furthermore, the company raised over USD 24 billion in October to stabilise its finances and safeguard its investment-grade rating amid scrutiny from rating agencies, added reports.
A Year Marked by Setbacks
The past year has been tumultuous for Boeing, marked by several crises. Starting the year, on January 5, a mid-air incident involving a door panel blowing off a 737 MAX jet triggered a series of events that would challenge the company's reputation and operational stability.
Moreover, following the incident, the regulatory bodies launched investigations into Boeing’s safety culture, and the company’s CEO stepped down.
Later on further adding to these difficulties, over 33,000 U.S. West Coast workers staged a strike starting September 13, severely disrupting the production of commercial jets.
The strike only ended on November 5, and employees have just begun returning to work at Boeing’s Seattle-area assembly lines.
