Boeing announced important workforce reductions, with CEO Dave Calhoun departing amid intense regulatory scrutiny. While the precise number of affected employees remains undisclosed, Calhoun indicated that all levels of the company would be impacted, with further details expected next week.
This declaration follows a period of labor unrest, during which over 33,000 Boeing workers, represented by the International Association of Machinists and Aerospace Workers (IAM), overwhelmingly voted to authorize a strike. The union cited concerns over stagnant wages, safety issues, and unfair labor practices as the basis for their potential work stoppage. At its peak, nearly 20% of Boeing’s total workforce was on the picket line.
Negotiations between Boeing and the IAM reportedly reached an impasse earlier this week, leading Boeing to withdraw its latest offer and suspend strike-related discussions. In a statement, the company cited the work stoppage as a contributing factor to production delays and the cessation of several aircraft manufacturing lines, which in turn influenced the decision to implement layoffs.
Representatives from other Boeing employee unions expressed disappointment with the layoff news and criticized the company’s attribution of blame to striking workers, rather then acknowledging potential managerial shortcomings. Ray Goforth, director for the Society of Professional Engineering Employees in Aerospace, stated that instead of resolving the IAM strike and focusing on restoring trust with regulators and customers, Boeing leadership chose to negatively impact all facets of the company.
