Boeing CEO Kelly Ortberg has promised to “refocus” the company in hopes of returning to an era of engineering excellence.
RENTON, Wash. — A planned layoff of 10% of its workforce will go ahead even if the machinists’ strike ends next week, a Boeing spokesperson said.
According to information released to KING 5 by vetted sources, termination notices will be delivered in mid-November, with the last day on the payroll for thousands of employees set to be January 17th. Managers and executives will also be affected by the layoffs.
The company said striking employees are not currently included in its layoff plans. Tens of thousands of Boeing machinists, represented by District IAM 751, are on strike while contract negotiations continue between them and the company. The strike has hurt Boeing’s finances, with S&P Global estimating it will lose $1 billion a month if the strike continues.
After taking the helm of the company in August, new CEO Kelly Ortberg said he plans to “refocus” the company, restoring confidence in Boeing and restoring its former reputation for engineering excellence. He said that he is aiming for
Boeing has posted losses of $25 billion since 2019, according to the Associated Press. This comes after the company installed microscopes on its aircraft after a series of aviation incidents, including a fatal 737 Max 8 crash and a door plug explosion in January 2024. A company’s manufacturing and quality assurance processes.
A whistleblower has come forward in the wake of the door plug explosion, claiming he was pressured to use “non-conforming” parts on the aircraft and retaliated against for reporting safety concerns.
Another whistleblower, who chose to remain anonymous, reported concerns that Boeing was eliminating quality inspections and instead relying on employees to inspect their own work and the work of their colleagues. The FAA previously expressed concerns about Boeing’s quality inspection efforts dating back to 2021.