Boeing to cut 17,000 jobs amid escalating financial woes
Boeing announced plans to lay off nearly 400 employees in Washington State. This is part of a broader job reduction plan that will encompass a total of 17,000 jobs. The decision stems from the company's financial crisis.
The American aviation giant Boeing intends to lay off nearly 400 employees in Washington State, reports TVN24. The layoffs are part of a larger plan that will affect a total of 17,000 jobs, approximately 10% of the company's entire workforce.
Boeing lays off employees
The decision to cut jobs was made after a month-long negotiation stalemate that concluded in October. At that time, Boeing also announced a one-year delay in the delivery of the new 777X jet model. In the third quarter, the company reported losses of £3.95 billion.
Earlier, in November, Boeing announced the layoff of over 2,500 employees in various states, including Oregon, South Carolina, and Missouri. However, the largest number of layoffs occurred in Washington State, where over 60,000 people are employed. Boeing explains that reducing the workforce is necessary to adapt to the current financial situation and the company's priorities.
The layoffs are expected to bring Boeing approximately £1.35 billion in savings.
To alleviate this situation, Boeing decided to sell shares. At the end of October, the company offered 90 million common shares and securities held by depositaries worth £3.95 billion. This generated approximately £18.95 billion.
Boeing admits fault
The company's financial condition was significantly impacted by its decision to admit fault in the case of two 737 MAX plane crashes (in Indonesia and Ethiopia), which resulted in the deaths of 346 passengers. About fraud charges, the giant agreed to pay a fine of £190 million to conclude the U.S. Department of Justice's investigation.
As part of the agreement, the aircraft manufacturer agreed to spend at least £355 million over the next three years to enhance safety programmes and compliance.
