Aircraft manufacturer Boeing has sent about 17,000 layoff notices to employees who are expected to be cut by mid-January, company officials told Fox Business last month.
In a statement published on October 11, Boeing told the outlet that it is “adjusting our workforce levels to align with our financial reality and a more focused set of priorities.”
The thousands of employees to be fired include executives and managers, new CEO Kelly Ortberg told staff in a memo obtained by the outlet.
“Our business is in a difficult position, and it is hard to overstate the challenges we face together,” Ortberg, who only took over as CEO in August, said.
He added that the nature of the situation “requires tough decisions, and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term.”
With approximately 170,000 personnel across the globe, the impending job cuts account for a staggering 10 percent of Boeing’s workforce.
The move comes after 33,000 Boeing machinists in Oregon and Washington went on strike on September 13, which lasted for nearly two months before ending, according to KOMO News.
Even though the strike just ended, a Boeing spokesperson told the outlet on Tuesday that it will be several weeks before the company is able to fully resume passenger plane construction.
“The state the business is in, we have to reduce headcount to deal with the reality we’re currently in. It’s tough. It’s hard on everybody,” said Brian Ball, a Seattle-area senior manager at Boeing. “I think they had to right-size the company. Boeing is a great company. They hire a lot of people, but sometimes I think they over-hire in certain areas, certain departments.”
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