Boeing recently announced that it will repay employees who were furloughed without pay during a seven-week strike by factory workers.
CEO Kelly Ortberg revealed that this repayment recognizes the sacrifices made by the staff amid challenging times for the aerospace giant. However, the company will proceed with a significant workforce reduction, impacting around 17,000 positions globally, roughly 10% of its staff, as Boeing moves to realign its finances and focus on core priorities.
During the strike, which began in September and halted production of Boeing's popular 737 MAX, thousands of employees faced unpaid furloughs on a rolling basis. Ortberg acknowledged in an internal memo that the unpaid leaves were necessary for the company's immediate survival, but he expressed gratitude to the affected staff by committing to repay lost wages.
"Your sacrifice made a difference and helped the company bridge to this moment," Ortberg noted.
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Boeing to Proceed with Layoffs Despite Repayment Gesture to Furloughed Workers
While the repayment is a positive gesture, Boeing is still implementing a large wave of layoffs. Ortberg emphasized that the cuts are necessary to improve Boeing's financial health and strengthen its competitiveness, according to Reuters.
"We will continue forward with our previously announced actions to reduce workforce levels to align with our financial reality," he stated.
According to the Society of Professional Engineering Employees in Aerospace, Boeing engineers are set to receive job loss notices as early as November 15.
The recent settlement with machinists, who returned to work after securing a 38% pay increase and a $12,000 bonus, ended the strike. Boeing has yet to announce a precise date for resuming 737 MAX production, though the company has hinted it will be a gradual process under regulatory review.
Boeing's financial struggles, worsened by quality control issues and reduced output, led the company to raise $24 billion in new funding. Ortberg hinted that additional changes, including potential asset sales, could be on the horizon as Boeing seeks stability and a path to future growth.
