Boeing will send layoff notices to thousands of its workers in the coming weeks and a senior US official has flown to Seattle to encourage talks between the plane maker and the union, according to a report.
Boeing will send 60 days’ notice to thousands of employees next month, including those in its commercial aviation division. A source familiar with the matter told ReutersThe laid-off employees will be let out in mid-January, the source said.
The plane maker — which said Friday it plans to cut 17,000 jobs and take $5 billion in charges — may send a second round of notices in December, the source said.
The report of the layoff notice comes after Boeing CEO Kelly Ortberg last week announced that the company would be cutting its workforce by 10%,
A spokesman for the Society of Professional Engineering Employees in Aerospace said the company told the union on Monday it would issue 60 days’ notice to its members on Nov. 15.
Boeing declined to comment on whether it would send a 60-day notice soon.
“We are committed to finding a solution to end the strike,” Boeing told The Post in a statement. “We will work with the union when they are ready to negotiate an agreement that recognizes our workers and protects the future of our company.”
Meanwhile, acting US Labor Secretary Julie Su flew to Seattle – the site of the Boeing Everett factory – days after the company revealed layoff plans.
“Acting Secretary Su is meeting with both sides today to assess the situation and encourage both sides to move forward in the bargaining process,” a Labor Department spokesperson said Monday.
Su has spoken with Boeing and the union before, but this is the first time she is talking to both sides of the bargaining at the same time.
The International Association of Machinists and Aerospace Workers (IAM) said its lead negotiator, John Holden, had updated Su on the negotiations and stressed the union’s commitment to a contract “that reflects the skills and dedication of our members.” Gives importance.”
There was a recent strike after a month On September 13, 33,000 employees left their jobs. Demand for 40% salary increase in four years.
A Boeing spokesperson said the company had shared information with managers that included plans to cut jobs. The spokesperson said that the striking IAM employees are not affected at present.
Brian Bryant, president of IAM International, called the job cuts “corporate greed at its worst.”
“Boeing turned its back on its own 17,000 employees — the same people who kept Boeing afloat year after year after crisis,” he said in a statement.
Boeing shares fell 1.3% on Monday after revelations of hours of job cuts on Friday, which also announced delays to the 777X jetliner and the end of civil 767 freighter production.
The company’s shares rose 1.4% on Tuesday.
A source told Reuters that Boeing would not ask for voluntary departures so it could avoid layoffs and losing too many skilled workers.
“The trick is not to lose the 10% of people you want to keep, which is even more important than usual in the post-pandemic skills shortage environment,” said Nick Cunningham, analyst at Agency Partners.
Boeing was hiring more workers to handle increased production – but its production efforts were sidelined after Alaska Airlines door plug accident In January.
The blown door plug caused significant reputational damage and increased regulatory scrutiny on the aircraft manufacturer.
The company’s stock has fallen 39.8% so far this year as its deliveries have declined.
Boeing pushed its 777X production back a year to 2026 — leaving a total of six years for jet deliveries.
Emirates Airline is one of Boeing’s largest widebody customers.
“We will have serious discussions with them over the next few months,” Tim Clark, president of Emirates Airlines, said in a statement. “I don’t understand how Boeing can make any meaningful forecast of delivery dates.”
Industry leaders are reportedly sharing concerns that Boeing could be harmed – unable to recover from significant reputational damage following the door plug incident. Fatal plane crashes in 2018 and 2019,
“Unless the company is able to raise money through a rights issue, I see a decline in investment with Chapter 11 imminent,” Clark told The Air Current.
Boeing has more than $10 billion of gross cash, which is likely to ease some concerns. But the company still needs to raise funds by the end of the year to satisfy concerned investors and analysts.
Most analysts expect Boeing to raise up to $15 billion through a share issue.
Global ratings agency S&P has estimated that the plane maker is losing more than $1 billion a month.
The agency kept the company’s rating on CreditWatch negative as a warning that it could downgrade Boeing’s investment-grade credit rating.
with post wires
