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Report states 17,000 Boeing layoffs will mostly impact white collar jobs.
Boeing’s striking machinists are not currently expected to be the target of job cuts by the company, according to an internal presentation obtained by The Seattle Times.
In the Seattle Times report, Boeing’s “Reduction In Force” presentation stated that 17,000 workers across the company will be laid off by Jan. 17, 2025. Another phase could see more layoffs to achieve the 10% cut on Feb. 21.
The report stated that employees at all levels and management are to be considered for layoffs, except for production and maintenance employees. Striking members of the International Association of Machinists and Aerospace Workers in the Pacific Northwest are not planned to be cut at this time.
Brian Bryant, International President of the IAM Union, released an emailed statement on Monday blasting the announcement of layoffs by Boeing.
“Boeing just turned its back on 17,000 of its own workers – the same people who carried Boeing through crisis after crisis, year after year,” Bryant said in the statement. “Their reward? A pink slip. This is corporate greed at its worst. Shame on you, Boeing executives.”
Another news release from IAM emailed Monday said that striking Boeing machinists will be joined by U.S. Senator Maria Cantwell and Congresswoman Pramila Jayapal during a rally at the IAM District 751 Union Hall in Seattle, Washington, on Tuesday afternoon.
The rally follows Boeing’s withdrawal of its final contract offer to the union on Oct. 8 and announcement of “next steps” – which were later seen to be widespread company layoffs and production program pauses.
“It’s time for Boeing to pay back the workers who sacrificed so much over the last decade in the face of rampant mismanagement by corporate executives,” said Jon Holden, President of IAM District 751. “The goal is to achieve respect and fair pay for the hardworking employees of Boeing who are trying to keep the US Aerospace industry a great resource in their communities, in the face of some historically bad corporate decisions and many years of workers making major sacrifices. For more than a decade, the hardworking employees of Boeing have sacrificed greatly for Boeing executives, and these workers are the key to this company recovering. Like many workers in America, Boeing workers have sacrificed greatly for their employer, including during the pandemic when these workers were reporting to the factory as executives stayed at home – these workers deserve to have all of those sacrifices recognized.”
Boyan Novakov, communications lead at Boeing Communications, told AirlineGeeks that the reductions in Boeing’s workforce will include several job classifications.
“As announced last Friday, over the coming months we are planning to reduce the size of our total workforce by roughly 10%,” Novakov said. “These reductions will include executives, managers and employees and will include union-represented and non-union workers.”
Reuters reported preliminary earnings figures show that Boeing expects to report $5 billion in losses for the third quarter, and The Seattle Times reported Tuesday that the company is aiming to raise as much as $25 billion in debt and equity over a three year period.
This money could help boost Boeing’s bargaining power with the striking IAM workers who are demanding higher wages, better healthcare, and a reinstatement of their pension.
A report by The Air Current on Monday stated Emirates President Sir Tim Clark openly suggested Boeing’s financial situation has put it on a trajectory to bankruptcy protection unless it fixes its equity position.“Unless the company is able to raise funds through a Rights Issue, I see an imminent investment downgrade with Chapter 11 looming on the horizon,” Clark said in a statement to The Air Current.
Caleb Revill is a journalist, writer and lifelong learner working as a Junior Writer for Firecrown. When he isn't tackling breaking news, Caleb is on the lookout for fascinating feature stories. Every person has a story to tell, and Caleb wants to help share them! He can be contacted by email anytime at [email protected].
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