As part of a larger plan to cut its employment by 10%, Boeing, the aerospace company best known for its commercial aircraft, is planning to fire 50 workers from its Gresham factory. According to KGW, this action reflects the company’s attempts to bring its finances under control after a turbulent time that included a lengthy machinist strike and regulatory difficulties. In addition to the 2,200 job losses in the states of Washington and Oregon, the layoffs in Oregon are a part of a broader downsizing initiative that will impact 17,000 Boeing workers globally.
The layoffs are scheduled to begin on January 17, according to the Oregon Worker Adjustment and Retraining Notification (WARN) notice. There seems to be a difference, though, as the start date of December 20 was listed in the equivalent Washington WARN notice, raising some questions about the timeframe. Companies must provide at least 60 days’ notice prior to major layoffs under the WARN Act. Following the announcement of a $6 billion third-quarter deficit, Kelly Ortberg, the company’s new CEO, had earlier in October announced the upcoming layoffs as a way to improve the company’s financial situation and restore its reputation, according to KGW.
The company’s problems are made worse by the layoffs, which follow a nearly two-month walkout by some 33,000 Boeing machinists. Production was hindered by the strike, which ended in early November. It had a significant effect on delivery dates for Boeing’s 737 MAX and 777 aircraft models. Prior to the strike, Boeing has been dealing with long-term problems emanating from two devastating disasters of its 737 MAX aircraft in late 2018 and early 2019, which claimed 346 lives in total.
“As previously announced, we are adjusting our workforce levels to align with our financial reality and a more focused set of priorities,” a Boeing representative told KOIN 6 News, highlighting the seriousness of the situation. We’re determined to make sure our workers get assistance during this trying time. These remarks demonstrate an understanding of the wider effects that the layoffs have on the impacted communities in both Washington and Oregon.
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