Boeing to Lay Off 30,000 Employees by 2021
Boeing president and CEO Dave Calhoun announced the company plans to reduce its number of employees to 130,000 by the end of next year.
The announcement was made on Wednesday, Oct. 28 following the release of Boeing’s third-quarter results which showed a 449 million dollar loss for the company.
While not as bad as expected the company’s debt has been rising as it has been having a tough year financially starting in January when it posted its first annual loss since 1997 after having to stop production on the 737 following two fatal crashes in 2018 and 2019.
In January, the company’s website listed its workforce numbers as 161,133 spread across four different categories of employment type.
These 30,000 employees cut include the 6,770 employees cut in May 2020 which were due to the impact of the Coronavirus on air travel.
When the first round of layoffs happened in May, Calhoun addressed the employees in a letter warning them of the upcoming layoffs and offered condolences.
“The COVID-19 pandemic’s devastating impact on the airline industry means a deep cut in the number of commercial jets and services our customers will need over the next few years, which in turn means fewer jobs on our lines and in our offices,” he said.
The company offered employees early retirement packages to qualifying employees and other monetary incentives for employees to voluntarily quit in hopes to alleviate some of the stress of involuntary layoffs throughout the company.
An aerospace reporter for the Seattle Times says he expects a large majority of the layoffs to come from the Boeing factory in Seattle as the location has already laid off over 10,000 employees, both voluntarily and involuntarily.
The layoffs are expected to begin immediately and continue over a 12 month period ending in 2021.