Boeing cuts 17,000 jobs amid financial crisis fallout
Boeing has announced plans to lay off nearly 400 employees in Washington State, as part of a broader job reduction initiative that will affect a total of 17,000 positions. This decision stems from the company's financial crisis.
The American aviation giant Boeing intends to cut nearly 400 jobs in Washington State, according to TVN24. These layoffs are part of a broader plan that will affect a total of 17,000 positions, accounting for about 10% of the company's overall workforce.
Boeing lays off employees
The choice to reduce employment came after a month-long negotiation impasse that concluded in October. At that time, Boeing also announced a one-year delay in the delivery of its new 777X jet model. During the third quarter, the company reported losses of $5 billion.
In November, Boeing announced the layoff of over 2,500 employees across various states, including Oregon, South Carolina, and Missouri. However, the majority of layoffs occurred in Washington State, where Boeing employs over 60,000 people. The company explains that reducing the workforce must align with its current financial situation and priorities.
The layoffs are expected to save Boeing approximately $1.7 billion.
To address its financial challenges, Boeing decided to sell shares. At the end of October, the company offered 90 million common shares and securities held by depositaries valued at $5 billion, resulting in approximately $24 billion in proceeds.
Boeing admits fault
The company’s financial condition was heavily affected by its decision to admit fault in two 737 MAX plane crashes (in Indonesia and Ethiopia), which resulted in the deaths of 346 passengers. In response to fraud charges, Boeing agreed to pay a fine of $243.6 million to conclude the investigation by the U.S. Department of Justice.
As part of the agreement, the aircraft manufacturer committed to spending at least $455 million over the next three years to strengthen safety programs and ensure compliance.
