Kathrine Frich
Many Boeing employees are expected to receive layoff notices by the end of the month.
Boeing’s CEO Kelly Ortberg announced that employees furloughed during a recent seven-week strike will receive compensation for lost wages.
Your Sacrifice Made a Difference
Despite this, the company is moving ahead with plans to reduce its workforce by 10%, cutting roughly 17,000 jobs as part of a restructuring plan to stay competitive.
Boeing began furloughing thousands of employees in September, when 33,000 unionized workers went on strike, halting production of the 737 MAX, one of Boeing’s best-selling aircraft models.
Initially, the furlough was set as unpaid leave. However, Boeing later committed to paying back wages to those affected.
“Your sacrifice made a difference and helped the company get here,” Ortberg stated in an email to employees. “We want to recognize that support by reimbursing lost wages if you were placed on unpaid leave.”
Morale Concerns in the Company
The decision to move forward with layoffs has sparked morale concerns within the company.
Many Boeing employees are expected to receive layoff notices by the end of the month, raising uncertainty.
Ortberg explained that these structural adjustments are crucial for Boeing’s long-term competitiveness and ability to deliver value to clients, according to Ziare.
The strike recently ended after Boeing and the union agreed to a contract that includes a 38% wage increase over four years and a one-time $12,000 bonus for workers.
Union employees are expected to return to their roles by November 12.
Although Boeing has yet to announce a specific date for resuming 737 MAX production, it will be a gradual process and subject to thorough regulatory reviews.