Boeing began issuing layoff notices to workers on Wednesday, as part of a planned 10 percent workforce reduction in the coming months, which aims to align the company’s workforce with its current financial situation.
The heavily indebted planemaker said in a statement, “We are committed to ensuring our employees have support during this challenging time.”
In October, Boeing CEO Kelly Ortberg announced the reduction—about 17,000 jobs—as part of broader changes to production plans, stating that the company must “reset our workforce levels to align with our financial reality.”
The cuts will impact all three Boeing divisions—commercial airplanes, defense, and global services—as well as various teams, including engineers, program managers, procurement agents, and shipside operations specialists.
Job losses will affect workers across multiple states, including Washington, Missouri, Arizona, and South Carolina.
Boeing has dismantled its global diversity, equity, and inclusion department and is exploring selling its Jeppesen navigation unit. The company is also reportedly considering selling off its space business, including its Starliner program.
U.S. employees receiving layoff notices this week will remain on Boeing’s payroll until January to meet federal requirements for a 60-day notice period before employment ends.
Eligible employees will receive career transition services, subsidized healthcare benefits for up to three months, and severance pay, typically one week of pay for each year of service.
These layoffs coincide with Boeing’s efforts to resume production of its 737 MAX aircraft, following a seven-week strike by over 33,000 workers that halted the output of most commercial jets.
A Boeing spokesperson said Tuesday that the delay in restarting facilities in Washington state and Oregon is due to the numerous steps required to safely resume production.
Boeing’s customers have grown increasingly frustrated by delays in receiving new planes—issues that started well before the strike on Sept. 13.
The strike further complicated matters, halting production of the 737 Max, 777 passenger jets, and a cargo version of the 767. Only the 787 production continued in South Carolina, staffed by nonunion workers.
The stoppage has significantly strained Boeing’s cash flow, with the 737 MAX being a key revenue driver for the company’s revenue.
According to financial results released in October, Boeing reported a $6.2 billion loss in the third quarter. In response to these challenges, the company raised over $21 billion in late October to bolster its financial position and preserve its investment-grade rating amid rating agency concerns.
Boeing faced a number of events throughout this year. On Jan. 5, a door panel detached from a 737 MAX jet mid-flight. Since then, the company’s CEO has stepped down, production has slowed under regulatory scrutiny of its safety practices, and its largest union began a strike on Sept. 13.
The Associated Press and Reuters contributed to this report.