Boeing Co. (NYSE:BA) has issued layoff notices to over 400 members of its professional aerospace labor union, as part of the company’s ongoing efforts to recover from financial and regulatory challenges.
What Happened: The layoff notices were sent out last week to members of the Society of Professional Engineering Employees in Aerospace (SPEEA), reported AP News. The affected workers will remain on the payroll through mid-January.
In October, Boeing announced plans to cut 10% of its workforce, approximately 17,000 jobs, in the coming months. The company’s CEO, Kelly Ortberg, stated that the company must “reset its workforce levels to align with our financial reality.”
See Also: Elon Musk’s Hedgehog Meme Coin ‘SHRUB’ Outpaces Dogecoin, Shiba Inu Gains, Surges 3,000% In A Week
The layoffs have impacted 438 members of the SPEEA union, with the local chapter representing 17,000 Boeing employees, primarily based in Washington, with some in Oregon, California, and Utah. The affected workers will receive career transition services, subsidized health care benefits for up to three months, and severance pay.
Why It Matters: Boeing, based in Arlington, Virginia, has been grappling with financial and regulatory issues since an incident involving an Alaska Airlines plane in January. Following the incident, the Federal Aviation Administration has limited the production of the 737 MAX to 38 planes per month, a target Boeing has yet to achieve.
The recent layoffs are part of Boeing’s broader efforts to navigate its financial challenges. The aerospace giant has been grappling with a series of setbacks, including a tough market and regulatory issues following a plane fuselage incident in January.
Earlier this month, Boeing’s unionized Machinists ended a seven-week strike by accepting a new contract with significant pay increases. This deal, supported by the Biden administration and facilitated by Acting U.S. Secretary of Labor Julie Su, marked a significant development in Boeing’s labor relations.
Price Action: Boeing stock ended 1.48% higher at $140.19, according to data from Benzinga Pro.
Image Credit: Shutterstock
