Boeing cuts workforce amid financial turbulence and legal woes
Boeing announced plans to lay off nearly 400 employees in the state of Washington. This is part of a larger workforce reduction plan that will affect 17,000 jobs. The decision stems from the company's financial crisis.
The American aviation giant Boeing plans to lay off nearly 400 employees in the state of Washington, reports TVN24. The layoffs are part of a broader plan that will cover a total of 17,000 jobs, which constitutes about 10% of the company's entire workforce.
Boeing lays off employees
The decision to reduce employment was made after a month-long negotiation deadlock that ended in October. At that time, Boeing also announced a one-year delay in the delivery of the new 777X jet model. In the third quarter, the company reported losses of $5 billion.
In November, Boeing announced the layoff of more than 2,500 employees in various states, including Oregon, South Carolina, and Missouri. However, the most significant number of layoffs occurred in Washington, where over 60,000 people are employed. Boeing explains that reducing employment must align with the current financial situation and the company's priorities.
The layoffs are expected to save Boeing about $1.7 billion.
To address the situation, Boeing has decided to sell stock. At the end of October, the company offered 90 million common shares and securities held by custodians valued at $5 billion, raising approximately $24 billion in this process.
Boeing admitted guilt
A significant factor in the company's financial condition was its decision to admit guilt regarding two 737 MAX plane crashes (in Indonesia and Ethiopia), resulting in the deaths of 346 passengers. In response to fraud charges, the company agreed to pay a $243.6 million fine to conclude the U.S. Department of Justice investigation.
As part of the agreement, the aircraft manufacturer committed to spending at least $455 million over the next three years on enhancing safety programs and compliance.
