Boeing, the aerospace corporation known for its commercial planes, is set to lay off 50 employees from its Gresham facility as part of a broader plan to reduce its workforce by 10%. This move is indicative of the company's efforts to stabilize its finances following a tumultuous period that included a protracted machinist strike and regulatory challenges, as reported by KGW. The layoffs in Oregon are a portion of the 2,200 job cuts within the states of Washington and Oregon and part of a larger downsizing effort affecting 17,000 Boeing employees worldwide.
The Oregon Worker Adjustment and Retraining Notification (WARN) notice outlines that the layoffs are slated to commence on January 17. However, there appears to be a discrepancy, as the corresponding Washington WARN notice posted a start date of December 20, leaving some uncertainty regarding the timeline. Under the WARN Act, companies are required to give a minimum of 60 days' notice before significant layoffs. The new CEO of Boeing, Kelly Ortberg, had announced the impending workforce reduction earlier in October as a measure to rectify the company's financial standing and rebuild its reputation, following a declaration of a $6 billion third-quarter loss, KGW reported.
The layoffs come on the heels of a nearly two-month strike by approximately 33,000 Boeing machinists, compounding the challenges faced by the company. The industrial action, which concluded in early November, affected production and notably impacted delivery schedules for Boeing's 737 MAX and 777 aircraft models. Before the strike, Boeing had been contending with prolonged issues stemming from two catastrophic crashes of its 737 MAX jets between late 2018 and early 2019, resulting in a combined death toll of 346 people.
Underscoring the gravity of the situation, a Boeing spokesperson stated to KOIN 6 News, "As previously announced, we are adjusting our workforce levels to align with our financial reality and a more focused set of priorities. We are committed to ensuring our employees have support during this challenging time." These words reflect an acknowledgment of the broader impact the layoffs have across the affected communities in both Oregon and Washington.
