Boeing Pays Back Laid-Off Staff, Continue Cuts
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Boeing Pays Back Laid-Off Staff, Continue Cuts

Boeing CEO Kelly Ortberg said Thursday that employees laid off during a seven-week strike by factory workers would be reimbursed by the company for lost wages, but it would continue with plans to cut about 10% of its global workforce.

Boeing laid off thousands of workers on a rolling basis after the strike by 33,000 union machinists began in September, halting production of its best-selling 737 MAX. But the planner later canceled the unpaid leave after announcing plans to cut 17,000 jobs.

“Your sacrifice made a difference and helped the company bridge this moment,” Ortberg told staff in an email seen by Reuters. “We want to thank you for your support by refunding your lost wages if you went on unpaid leave.”

Boeing is dealing with morale issues as it moves forward with its job cuts, with many of the employees set to be notified of the future of their roles this month.

“We will continue moving forward with our previously announced measures to reduce our workforce to align with our financial realities and a more focused and streamlined set of priorities,” Ortberg wrote to staff. “These structural changes are important to our competitiveness and will help us deliver more value to our customers in the long term.”

A spokesperson for the Society of Professional Engineering Employees in Aerospace, which represents Boeing engineers, said earlier that it was informed that 60-day job loss notices would be issued to its members on November 15.

Boeing on Monday won ratification of a contract that gave its machinists a 38% pay increase over four years and a $12,000 bonus, ending the strike.

These workers must be back by November 12. Boeing has not yet said when it plans to resume production of the 737 MAX, but has indicated it will be gradual and subject to regulatory review.

The planemaker has posted losses of nearly $8 billion this year as it continues to grapple with a quality crisis stemming from a panel blowout in January.

“We have hard work ahead of us to restore our company and deliver on our customer commitments, but we are on the right track and making the right changes,” Ortberg wrote.

Boeing raised $24 billion in new capital last month to shore up its finances. Ortberg said last month that he is reviewing Boeing’s operations and long-term forecasts.

The company may end up selling some assets, as it reduces its workforce to focus on the company’s key civilian aircraft manufacturing and nuclear defense units.

Ortberg’s email was previously reported by Air Current, an aviation industry magazine.