Boeing Expected to Announce Job Cuts This Week

Boeing is shedding employees amid a severe downturn in air travel.
Author:
Updated:
Original:

Boeing  (BA) - Get Report is expected to announce job cuts in the Seattle-area this week as the planemaker looks to shed employees amid a severe downturn in air travel.

The Society of Professional Engineering Employees in Aerospace, which represents about 18,000 engineers in the Puget Sound region, said Boeing informed the union that layoff notices will be issued Friday.

About 1,300 of the union’s members applied for and were accepted to take buyouts, Bloomberg reported, citing a spokesman for the labor group.

It was reported last month that Boeing was considering a plan to reduce its workforce of 160,000 by about 10%. The cuts largely were expected to come from the aerospace giant's commercial arm, which has been pressured by the crisis in the global airline industry.

Earlier in April Boeing announced it was offering voluntary buyouts, with CEO David Calhoun saying the voluntary layoffs offer “aims to reduce the need for other workforce actions.”

The Puget Sound Business Journal reported Tuesday that Boeing told officials at the engineering union to expect cuts this week of between 15% and 20% to white-collar workers in the Seattle area and Southern California.

The airplane maker is still reeling from the grounding since March 2019 of its 737 MAX following two fatal crashes. In April, Boeing recorded zero orders for the second time this year and customers canceled another 108 orders for the 737 MAX. In March, customers cancelled 150 orders for the jet.

Boeing shares were rising more than 3% in premarket trading Wednesday to $149.29.