Boeing (BA) has faced a series of unfortunate events this year that has significantly drained the company’s pockets.
The planemaker was first subject to widespread scrutiny in January after a door plug blew off of an Alaska Airlines plane (a Boeing 737 Max 9 aircraft) mid-flight, leading to multiple lawsuits and an intensive federal investigation.
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In addition, multiple Boeing whistleblowers have come forward to further flag safety and quality control issues that have allegedly plagued the company for years. Two of those whistleblowers later died, one from a “self-inflicted gunshot wound” and the other from an infection, which heightened suspicions around the company.
Related: Boeing cuts a controversial team after receiving stern warning
Finally, the nail in the coffin was a historic weekslong strike from 33,000 unionized workers, which ended on Nov. 4. Analysts have estimated that the strike cost Boeing about $1 billion per month, contributing to the $5.7 billion it lost from operations during the third quarter of this year.
Boeing makes a harsh move after issuing several warnings
As the company looked to repair its losses, it opted to make a harsh decision that would have a negative impact on thousands of its workers five days before Christmas.
Boeing is planning to lay off more than 2,500 employees on Dec. 20, according to a new report from Reuters. This will affect engineers, technicians, and nonunion workers in Washington, Missouri, Oregon and South Carolina.
A Boeing worker holds a picket sign near the entrance to a Boeing facility during the weekslong strike on October 24, 2024 in Seattle, Washington.
The move is part of Boeing’s plan to cut 10% of its global workforce, which will impact 17,000 jobs.
Boeing Chief Financial Officer Brian West first warned of potential job cuts when discussing the negative impacts from the strike in a memo to employees in September.
“Our business is in a difficult period,” said West in the memo. “This strike jeopardizes our recovery in a significant way, and we must take necessary actions to preserve cash and safeguard our shared future.”
Related: Boeing delivers hard-nosed message to employees amid strike
In October, Boeing CEO Kelly Ortberg then sent another memo to workers revealing the company’s plan to cut 10% of its workforce, claiming that the job cuts will affect “executives, managers and employees.”
“Our business is in a difficult position, and it is hard to overstate the challenges we face together,” said Ortberg in the memo. “Beyond navigating our current environment, restoring our company requires tough decisions and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term.”
Boeing attempts to mend bridges with employees after strike
The first round of job cuts from Boeing comes after its CEO vowed earlier this month to repay lost wages to thousands of salaried employees who were temporarily furloughed during the strike, which halted production of the company’s 737 Max aircraft.
More Boeing:
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“Your sacrifice made a difference and helped the company bridge to this moment,” said Ortberg in a memo that was obtained by Reuters. “We want to acknowledge your support by returning your lost pay if you went on unpaid furlough.”
What finally ended the seven-week Boeing strike was the International Association of Machinists (the union that represented the striking workers) voting to accept an offer from Boeing that promised a 38% pay hike over four years and a $12,000 bonus.Â
Related: Veteran fund manager sees world of pain coming for stocks
