Boeing to Repay Furloughed Staff, Continue with Job Cuts

Boeing to Repay Furloughed Staff, Continue with Job Cuts

In Summary

  • Boeing to repay furloughed staff but cut 17,000 jobs.
  • Strike halted 737 MAX production; workers get lost wages.
  • Engineers notified of job losses; morale remains challenged.
  • Boeing restructures, resolving strike with contract deal.


Catenaa, Monday, November 18, 2024 – Boeing CEO Kelly Ortberg announced that the company would repay salaried employees furloughed during a seven-week strike but proceed with its plans to cut approximately 17,000 jobs, or 10% of its global workforce.

Following a strike by 33,000 union machinists that began in September, Boeing had furloughed thousands of salaried workers.

The strike halted production of the company’s flagship 737 MAX. Although Boeing initially implemented unpaid furloughs, Ortberg confirmed that employees who went on furlough would receive their lost wages.

In an email to staff, Ortberg acknowledged the sacrifice of workers, stating, “Your sacrifice made a difference and helped the company bridge to this moment.” He reiterated the necessity of workforce reductions, noting that these structural changes were essential for Boeing’s competitiveness and long-term customer value.

Boeing’s restructuring efforts come amid morale challenges as employees await notification about job cuts. The Society of Professional Engineering Employees in Aerospace, which represents engineers at Boeing, confirmed that its members would receive 60-day notices of job losses on November 15.

Despite these challenges, Boeing remains focused on restructuring. The company recently finalized a contract with its machinists, offering a 38% pay raise over four years and a $12,000 bonus, resolving the strike. While the timeline for resuming 737 MAX production remains unclear, Boeing plans to gradually restart production, under regulatory scrutiny.

Boeing, which has faced nearly $8 billion in losses this year due to a quality crisis, raised $24 billion in fresh capital last month to strengthen its finances.

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