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Boeing issues layoff notices to more than 400 workers as it begins drastic cutbacks
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Boeing issues layoff notices to more than 400 workers as it begins drastic cutbacks

SEATTLE – Boeing has sent layoff notices to more than 400 members of its professional aerospace union, part of thousands of planned cuts as the company struggles to recover from financial and regulatory trouble as well as a eight week strike by his machinists’ union.

The pink slips were sent last week to members of the Society of Professional Engineering Employees in the Aerospace Field, or SPEEA, The Seattle Times reported. Workers will remain on the payroll until mid-January.

Boeing announced in October that it planned to cut 10% of its workforce, about 17,000 jobs, in the coming months. CEO Kelly Ortberg told employees the company needed to “reset workforce levels to align with our financial reality.”

The union Society of Professional Engineering Employees in Aerospace, or SPEEA, said the cuts affected 438 members. The union’s local chapter has 17,000 Boeing employees, mostly based in Washington, with some in Oregon, California and Utah.

Of the 438 workers, 218 are members of SPEEA’s professional unit, which includes engineers and scientists. The rest are members of the technical unit, which includes analysts, planners, technicians and skilled tradesmen.

Eligible employees will receive career transition services and subsidized health care benefits for up to three months. Workers will also receive severance pay, usually about one week’s pay for each year of service.

Unionized machinists at Boeing began returning to work earlier this month after the strike.

The strike strained Boeing’s finances. But Ortberg said on a call with analysts in October that he had not caused the layoffs, which he described as being overstaffed.

Boeing, based in Arlington, Virginia, has been facing financial and regulatory problems since a the panel exploded from the fuselage of an Alaska Airlines plane in January. Production rates have slowed to a crawl, and the Federal Aviation Administration has capped 737 MAX production at 38 planes per month, a threshold Boeing has yet to meet.

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