Boeing is set to reduce its workforce, affecting more than 180 employees at its Mesa facility in Arizona. The aerospace behemoth has been battered by a series of financial and regulatory challenges, compounded by the fallout from a machinists' strike on the West Coast. This workforce reduction was based on notices sent to employees on Tuesday, as reported by 12News.
In a notice filed with Arizona Job Connection, Boeing disclosed the layoffs of 184 workers in Mesa. This move follows Boeing's announcement in October when the company revealed plans to cut 10% of its workforce in the ensuing months. According to ABC15, Boeing's challenges have been mounting since two fatal crashes involving its 737 Max jetliner and an incident where a panel detached from an Alaska Airlines plane's fuselage in January.
The company has been grappling with slowed production rates, while adherence to a Federal Aviation Administration-imposed production cap of 38 737 MAX planes per month has been mandated but not yet achieved, especially after November's labor strike halted production lines altogether. Boeing CEO Kelly Ortberg detailed in an October call that the recent layoffs were not a result of the labor strike but instead due to overstaffing, and another round of cuts is expected to come in December. "Despite the labor strike," Ortberg said, "it did not cause the layoffs," as stated by ABC15.
