- Company will lay off 17 thousand people
- Layoff notice sent to 438 people
Seattle. Boeing has sent termination notices to more than 400 members of its professional aerospace workers union. This is part of a plan to lay off thousands of people as the company is struggling to overcome financial and regulatory problems. Apart from this, the eight-week strike of its machinists union is also a reason for this.
Last week, termination notices (pick slips) were sent to members of the Society of Professional Engineering Employees in Aerospace (SPEEA), The Seattle Times reported. Employees will receive salaries by mid-January. Boeing announced in October that it planned to cut its workforce by 10 percent, or about 17,000, in the coming months.
The company's chief executive officer (CEO) Kelly Ortberg told employees that the company must 'reassess its staffing levels in line with its financial reality.' SPEEA said 438 members were affected by the layoffs. The union's local chapter represents 17,000 Boeing workers based primarily in Washington, with some in Oregon, California and Utah. Of those 438 employees, 218 are members of SPEEA's professional body, which includes engineers and scientists. The rest are members of the technical unit, which includes analysts, planners, technicians and skilled professionals.
Eligible employees will receive career transition services and subsidized health care benefits for up to three months. Employees will also receive an allowance, which is typically about one week's pay for every year of service. After the strike, Boeing's unionized machinists started returning to work this month.
The strike affected Boeing financially. But in a call with analysts in October, Ortberg said it did not lead to layoffs.
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