Boeing lays off hundreds of employees, resumes 737 MAX production
What's the story
Aerospace giant Boeing has confirmed that it has laid off nearly 900 employees across Washington and California.
The move comes as part of a larger strategy to cut its workforce by 10% owing to financial difficulties and regulatory issues.
The layoffs will impact a range of roles, including engineers, across multiple divisions of the company.
Workforce reduction
Layoffs distributed across 2 states
The workforce reduction has resulted in the termination of nearly 400 employees in Washington and over 500 in California. These layoffs are part of Boeing's plan to recover from its ongoing challenges.
The company had earlier announced its plan to cut its workforce by 10% in the coming months, as it deals with financial and regulatory troubles, and a nearly two-month-long machinists' strike.
CEO's statement
Boeing's CEO clarifies reason behind layoffs
Boeing's CEO Kelly Ortberg has clarified that the layoffs aren't a result of the machinists' strike but overstaffing.
In November, Boeing started notifying workers who would be affected by these layoffs.
According to notices filed with state employment agencies, the first round of cuts affected about 3,500 people nationwide.
Impact assessment
Layoffs span across various roles and divisions
The layoffs have impacted a wide range of roles from engineers to recruiters and analysts. The cuts have affected multiple divisions within Boeing, including its commercial, defense, and global services sectors.
The company has assured that most laid-off employees will remain on the payroll for about two months and will receive severance pay, career transition services, and subsidized health insurance benefits for up to three months.
Recovery efforts
Boeing's financial struggles and future plans
Boeing has been struggling financially since the deadly crashes of its 737 MAX jetliner in 2018 and 2019, which killed 346 people.
The company's reputation took another hit when a panel blew off the fuselage of an Alaska Airlines plane in January.
Nevertheless, Boeing resumed production of its best-selling 737 MAX jetliner last week, after a seven-week strike by factory workers ended.
The move is critical for the heavily indebted planemaker's recovery efforts.