RENTON, Wash. — Clouds of rain and uncertainty collided over Boeing’s Washington facilities Wednesday as the first of three days of layoffs at the company ensued.
The company says 10% of the 171,000 employees will be laid off as the company says it’s “adjusting our workforce levels to align with our financial reality and a more focused set of priorities.”
“It’s challenging, it’s kind of a mind game for all of us,” said Walter Gracey, an employee with 12 years at Boeing under his belt. “It’s a roller coaster for your family. To keep everything intact is very hard, but it’s what we have to do to stay afloat and keep moving.”
Walter says his two daughters and wife all rely on his company benefits. He’s moved several times in order to move up in the company, including stints in Texas and California.
“Hopefully they’ll realize the hard work we’ve done in the past,” Gracey said.
Workers say the layoffs were focused on “white collar” and salaried positions. According to the union, IAM workers who were on strike earlier this month will not be affected by this round of layoffs. The union representing engineers and technical workers, SPEEA, says they have not been told about layoffs for its members, but anticipates them coming and is working to support anyone who does lose their job.
“I gotta tell you, it was really stressful up until the point where they said the conversations have already been had,” said Denise Bartlett, a workforce coach who says 14% of her department was laid off.
“We were light compared to some, others were heavier,” she continued.
Boeing is struggling with nearly $58 billion in debt and recovering from the IAM strike that cost an estimated $5 billion alone. Before then, a door plug blowout renewed safety concerns that first arose after two of the company’s planes crashed in 2018 and 2019.
Boeing also recently welcomed new CEO Kelly Ortberg, bringing a renewed focus on Washington operations.
“My mission here is pretty straightforward. Turn this big ship in the right direction and restore Boeing to the leadership position that we all know and want,” Ortberg said during a Q3 earnings call last month.
“He definitely is going to make the company healthier, they are overweight in a lot of areas,” Gracey said. “Quality needs to be looked at, that’s just a big thing Boeing needs to focus on and I know they’re focused on it.”
Boeing has not yet shared where laid-off workers are located, but the Washington Employment Security Department expects the total number of Washington workers who have been laid off to be released by Sunday.
The company plans to keep workers on the payroll through mid-January, offer severance of six weeks, and three months of health benefits.
“We are committed to ensuring our employees have support during this challenging time,” a Boeing statement said.
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