NEW YORK (AFP) – The United States (US) aviation giant Boeing sent out its first redundancy notifications on Monday as part of a previously announced plan to cut its global workforce by 10 per cent.
Boeing intends to cut almost 2,200 jobs in the US state of Washington, which is home to many of its oldest factories, according to a statement released on Monday.
Companies in the US are required by law to submit a “WARN” notice (Worker Adjustment and Retraining Notification) to local authorities 60 days before any layoffs.
In its notice, Boeing said it expects to start laying people off permanently starting December 20. A total of 2,199 people will be affected.
The group has been plagued by production quality problems, and has just endured a strike lasting more than 50 days that paralysed two crucial factories.
On October 12, Boeing unveiled plans to reduce its global workforce by 10 per cent over the coming months, without giving any further details. Boeing’s employees numbered some 170,000 people at the end of last year, with close to 67,000 of them in Washington state, where the company was founded and where it produces its best-selling 737 line of aircraft, along with the 777, 767 and several military planes.
Its plants in Renton and Everett, located near Seattle, were recently hit by a strike involving more than 33,000 members of the local branch of the International Association of Machinists (IAM), who were negotiating over pay and work conditions.
“As previously announced, we are adjusting our workforce levels to align with our financial reality and a more focused set of priorities,” a company spokesperson told AFP.
According to Boeing, most of the employees receiving redundancy notices this week will leave the company in mid-January.
Benefits and health insurance will continue to be paid for up to three months after that.
