Boeing's Second Layoff Round Hits Nearly 900 Jobs in America

Boeing has laid off hundreds of employees in the second round of job cuts in the United States, including around 400 in Washington and 500 in California. The workers will remain on payroll until February 21, according to a notice filed by the company with the States’ employment security department on Monday. 

The aircraft maker made the announcement regarding the layoffs across various roles in October. The company said that it will cut its workforce by 10 per cent of its nearly 170,000 workforces. The first round of job cuts took place in November, rendering nearly 3,500 Boeing workers jobless. 

Addressing the employees in October, Boeing’s CEO Kelly Ortberg said the company's financial health is not sound and the company is eying to make structural changes to stay competitive. The company is taking measures to revive itself and regain trust. The company has restarted manufacturing of its 737 Max jetliner, according to Reuters. 

“We have to make structural changes to ensure we can stay competitive. We know these decisions will cause difficulty for you, your families and our team, and I sincerely wish we could avoid taking them,” said Ortberg on October 11. “However, the state of our business and our future recovery require tough actions,” the Boeing CEO added. 

Boeing’s financial and legal turmoil 

The financial troubles of the company can be easily made out through its quarterly results. The giant recorded a huge loss of $6 billion in the third quarter, largely due to workers’ protests that hindered work for nearly a month. 

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After the twin crash of Boeing’s 737 Max, the company’s trouble mounted as it dragged on in legal cases. Recently, on December 6, a US court judge rejected Boeing’s plea deal. Moreover, recently after a door plug on an Alaska Airlines Max 9 went off, Boeing started facing fresh scrutiny from the government and public criticism. 

“Clearly, we are at a crossroads. Trust in our company has eroded. We’re saddled with too much debt. We’ve had serious lapses in our performance across the company that have disappointed many of our customers,” said the CEO, according to dw.com. 

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