Boeing issues 60-day layoff notice after debt-laden aircraft maker cuts 10% of its global workforce

Boeing Co said on Wednesday it would start issuing layoff notices this week to workers affected by the debt-laden aircraft maker’s broader plan to cut 17,000 jobs, or 10% of its global workforce. U.S. employees who received notices this week will remain on Boeing’s payroll until January to comply with a federal requirement to give employees 60 days’ notice before terminating their employment. Boeing is widely expected to issue a Worker Adjustment and Retraining Notice (WARN) in mid-November.

Boeing said in a statement: “As previously announced, we are adjusting workforce levels to fit our financial realities and more focused priorities. We are committed to ensuring our employees are supported during this challenging time. Boeing Co., under new Chief Executive Officer Kelly Ortberg, is trying to resume production of its best-selling 737 MAX after weeks of crippling strikes by more than 33,000 workers on the U.S. West Coast. Production of some commercial aircraft ceased.

MAX is a key revenue generator for the company, which raised more than $24 billion in late October to shore up its shaky finances and protect its investment grade amid concerns from ratings agencies.

Boeing’s crisis this year began on January 5, when a door panel of a 737 MAX jet was blown off in mid-air. Its chief executive has since left, production has slowed and its largest union went on strike on September 13 as regulators investigate its safety culture.

The strike ended on Nov. 5 and Boeing workers returned to the company’s Seattle-area assembly lines this week, supporting a slow recovery in MAX production. But two people familiar with the matter told Reuters that the looming layoffs, coupled with cuts in spending and travel, have affected employee morale at the U.S. plane maker over the past few months. Many employees on Wednesday were still waiting for calls or Zoom meetings with their bosses to find out whether they would lose their jobs, said the sources, who spoke on condition of anonymity because they were not authorized to speak to the media.