Boeing plans to send layoff notices to thousands of employees in the coming weeks, and senior U.S. officials have reportedly flown to Seattle to facilitate negotiations between the plane maker and unions.
Boeing plans to send 60 days' notice next month to thousands of employees, including those in its civil aviation sector. A source familiar with the matter told Reuters.. Officials said the laid-off staff members are expected to be laid off in mid-January.
The aircraft maker announced Friday that it plans to cut 17,000 jobs and incur $5 billion in costs, but could send out a second round of notifications in December, the people said.
Reports of layoff notices come after Boeing CEO Kelly Ortberg announced last week that the company would cut 10% of its workforce.
A spokesperson for the Society of Aerospace Professional Engineers said the company told the union on Monday that it would issue 60-day notices to members on Nov. 15.
Boeing declined to comment on whether it will soon issue a 60-day notice.
“We remain committed to finding a solution to end the strike,” Boeing told the Post in a statement. “We will work with unions when they are ready to negotiate an agreement that recognizes our employees and protects the future of our company.”
Meanwhile, Acting U.S. Labor Secretary Julie Su flew to Seattle, home of the Boeing Everett plant, days after Boeing announced plans to cut jobs.
“Acting Secretary Hsu will meet with both sides today to assess the situation and encourage both sides to move forward with the negotiation process,” a Labor Department spokesperson said on Monday.
Hsu has spoken with Boeing and the union in the past, but this is the first time he has spoken to both sides of the negotiation at the same time.
The International Association of Machinists and Aerospace Workers (IAM) said chief negotiator John Holden updated Hsu on the negotiations and said the union is seeking a contract that “respects the skills and dedication of its members.” announced that it emphasized its efforts.
The latest strike marks one month since 33,000 workers were laid off on September 13, demanding a 40% wage increase over four years.
A Boeing spokesperson said the company has shared information with management, including plans for layoffs. A spokesperson said there are currently no repercussions for the IAM employees who went on strike.
Brian Bryant, chairman of IAM International, called the layoffs “corporate greed at its worst.”
“Boeing just turned its back on 17,000 of its own employees, the same people who have carried Boeing through crisis after crisis year after year,” he said in a statement.
Boeing shares fell 1.3% on Monday following the announcement of overtime layoffs on Friday, which also announced delays for the 777X jetliner and the end of production for the commercial 767 freighter.
The company's shares rose 1.4% on Tuesday.
Boeing will not seek voluntary redundancies to conserve severance funds and avoid losing many skilled workers, sources told Reuters.
“The trick is not to lose 10% of the talent you want to keep, which is even more important than usual in a post-pandemic skills shortage environment,” said Nick Cunningham, an analyst at Agency Partners.
Boeing had been hiring more employees to keep up with increased production, but production was suspended following the Alaska Airlines door plug accident in January.
The blown door plug led to significant reputational damage and increased regulatory scrutiny for the plane maker.
The company's stock price has plunged 39.8% so far this year, and deliveries have slowed.
Boeing has delayed production of the 777X by one year to 2026, meaning jet deliveries have been delayed by a total of six years.
Emirates is one of Boeing's biggest customers for wide-body aircraft.
“We will be having serious discussions with them over the coming months,” Emirates president Tim Clark said in a statement. “I don't understand how Boeing can make meaningful predictions about delivery dates.”
Industry leaders reportedly share concerns that Boeing will fail and fail to recover from the severe reputational damage caused by the door plug scandal and airliner crashes in 2018 and 2019. are.
“Unless the company is able to raise capital through a rights issue, we see a Chapter 11 downgrade on the horizon,” Clark told Air Current.
Boeing has more than $10 billion in cash, which should ease some concerns. But the company needs to raise money by the end of the year to reassure concerned investors and analysts.
Most analysts expect Boeing to raise up to $15 billion through a stock offering.
Global ratings agency S&P estimates that the plane maker is losing more than $1 billion every month.
The agency gave Boeing a negative rating on CreditWatch, warning that it could downgrade Boeing's investment grade rating.
with post wire
