Boeing Co. BA is set to lay off more than 2,500 employees across four U.S. states, including Washington, Oregon, South Carolina, and Missouri. This move is part of the company’s broader plan to cut 17,000 jobs, which accounts for 10% of its global workforce.
What Happened: The layoffs will impact engineers, technicians, and non-union workers, reported Reuters. On Wednesday, the affected employees were informed that they would remain on Boeing’s payroll until Jan. 17, in compliance with federal regulations.
Boeing’s decision to issue a Worker Adjustment and Retraining Notification (WARN) in mid-November was widely anticipated. Additional layoffs are expected in December. The company may also reduce its workforce through workforce attrition, selective hiring, and the sale of subsidiaries.
The layoffs are expected to affect workers in the company’s key manufacturing hubs, providing an indication of the impact on the workforce.
Why It Matters: The layoffs come amid Boeing’s ongoing financial struggles. In October, the company announced plans to cut 10% of its workforce.
Despite these challenges, Boeing has been making efforts to recover. The company recently forecasted a 67% growth in the global air cargo fleet by 2043, driven by strong demand in Asia. This indicates that Boeing is still a key player in the aviation industry and is working to adapt to changing market conditions.
Price Action: Boeing stock closed the regular trading session at $143.87 on Monday, up 2.63% for the day. In after-hours trading, the stock edged down 0.23%. Year to date, Boeing’s stock has declined significantly, falling 42.85%, according to data from Benzinga Pro.
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