Thu, Jan 12, 2017
First Of Three Rounds Of Workforce Reductions Expected In 2017
An internal memo sent to Boeing employees Tuesday announced a new round of buyouts for engineers in all divisions of the company, and said that layoff notices for engineers are forthcoming later this year with two more rounds likely, according to reports.
The Seattle Times reports that the company did not say how many engineers are expected to be idled through the workforce reductions.
The memo came from Boeing Commercial Airplanes vice president of engineering John Hamilton. “As we enter 2017, our plan calls for us to reduce our engineering staff,” the memo stated. “I realize some of this news is unpleasant. But I wanted to respect your right to know what is occurring this year.”
Details of the buyout offer were expected to be released on Friday, according to the report. Those who accept the buyouts will work for Boeing until April 21.
The buyouts will be available to engineers working in Washington State, South Carolina, and southern California. Hamilton said in the memo that two additional rounds of buyouts for engineers will be coming later this year. He cited the company's decision to lower the production rate of the 777 in late December and fewer sales as the reason for the workforce reductions.
Boeing spokesman Doug Alder said that the company hopes to achieve a large portion of its workforce reduction through the buyouts and attrition, but layoffs are possible should that not be the case. He said the company will also be making "aggressive" cuts in "nonlabor areas."
(Image from file)
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