Winning Bizness Desk

Mumbai. Boeing has sent layoff notices to over 400 members of its Professional Aerospace Labor Union as the company struggles with financial difficulties, regulatory challenges, and the impact of an eight-week machinists’ union strike. The affected employees will remain on the payroll until mid-January. In October, Boeing announced plans to cut 10% of its workforce, equivalent to around 17,000 jobs, as part of its strategy to address ongoing challenges. CEO Kelly Ortberg informed employees that the company needs to align its workforce levels with its financial realities.

Union Confirms 438 Employees Impacted

The layoffs include members from Boeing's technical unit, such as analysts, planners, technicians, and skilled tradespeople. Eligible employees will receive three months of career transition services and subsidized healthcare benefits. Boeing’s local union chapter has 17,000 members, most of whom are based in Washington, with others in Oregon, California, and Utah.

Financial Crisis Slows Production

Boeing’s financial troubles deepened after an incident in January when the emergency exit door of an Alaska Airlines Boeing 737-9 Max aircraft broke off mid-flight at 16,000 feet. This incident, along with ongoing regulatory scrutiny, has slowed production rates and added to the company’s challenges.

History of Boeing 737 Max Crashes

The Boeing 737 Max, introduced in 2015, became one of the most widely used aircraft after receiving approval from the Federal Aviation Authority (FAA) in 2017. However, the model has faced multiple crashes:

• * In 2018, a Lion Air flight in Indonesia crashed, killing 189 people.
• * In 2019, another crash occurred, claiming 157 lives.

Following the second crash, the FAA grounded the aircraft for nearly two years. In 2021, Boeing paid a $2.5 billion fine to the U.S. Department of Justice over safety issues related to the 737 Max.

Boeing’s Legacy and Operations

Founded on July 15, 1916, by William Boeing, the company is a leading manufacturer of airplanes, rockets, satellites, telecommunications equipment, and missiles. Boeing is the largest exporter in the United States and the third-largest defense contractor globally. The company supplies aircraft to airlines across the world and employs over 150,000 people in various locations. Despite its legacy and global reach, Boeing is facing one of its toughest periods due to financial setbacks, regulatory pressures, and operational challenges. The layoffs and production slowdowns mark a critical juncture for the aviation giant as it works to stabilize its operations and regain its footing in the aerospace industry.