As the strike of 33,000 union machinists continues in Washington state, Boeing employees received the news they feared: layoffs are imminent.
The strike, which began last Friday, is the first since 2008 and has significantly impacted Boeing’s operations in the Pacific Northwest, according to The Associated Press,
On Monday, Boeing’s Chief Financial Officer announced cost-cutting measures, including a hiring freeze and the possibility of temporary furloughs. The announcement likely foreshadowed the layoffs, which the company confirmed would be temporary. However, Boeing has not specified the number of workers affected, only stating that a “large number of US-based executives, managers, and employees” would be impacted, according to U.S. News and World Report.
Analysts: Strike costs Boeing $100 million in daily revenue
Boeing President and CEO Kelly Ortberg said the furloughs would begin in the “coming days” and described the move as one of the difficult steps needed to save money for the company’s recovery. Those laid off will continue to receive benefits, and selected employees will be able to take one week of furlough every four weeks for the duration of the strike.
In a letter to employees, Ortberg emphasized the importance of these measures to preserve cash and ensure Boeing’s successful recovery. He assured that all activities critical to safety, quality, customer support, and key certification programs, including 787 production, would continue.
The full memo:
Team,
As you know, the IAM 751 and W24 went on strike last Friday. We remain committed to resetting our relationship with our represented employees and continuing discussions with the union to reach a new agreement that is good for all of our teammates and our company as soon as possible.However, with production paused across many key programs in the Pacific Northwest, our business faces substantial challenges and it is important that we take difficult steps to preserve cash and ensure that Boeing is able to successfully recover.As part of this effort, we are initiating temporary furloughs over the coming days that will impact a large number of US-based executives, managers and employees. All benefits will continue for affected employees, and to limit the impact to you, we are planning for selected employees to take one week of furlough every four weeks on a rolling basis for the duration of the strike. Your leaders will be in touch today to share more detail on your team’s specific approach. Along with these steps, my leadership team and I will take a commensurate pay reduction for the duration of the strike. Most important, we won’t take any actions that inhibit our ability to fully recover in the future. All activities critical to our safety, quality, customer support and key certification programs will be prioritized and continue, including 787 production. While this is a tough decision that impacts everybody, it is in an effort to preserve our long-term future and help us navigate through this very difficult time. We will continue to transparently communicate as this dynamic situation evolves and do all we can to limit this hardship.
Restoring trust,
Kelly
