Boeing Job Cuts to Start Hitting Seattle-Area Workers This Week

Boeing Co. is poised to unveil deep job cuts to its Seattle-area engineering ranks this week as the planemaker shrinks its workforce to cut costs amid the sharpest contraction in aviation history.

The company has informed union officials that layoff notices will go out Friday, and some managers have already begun alerting employees that they will lose their jobs, according to SPEEA, which represents about 18,000 engineers in the Puget Sound region. About 1,300 of the union’s members applied for and were accepted to take buyouts, according to a spokesman for the labor group.

Chief Executive Officer Dave Calhoun warned last month that Boeing would need to cut 10% of its workforce -- or about 16,000 jobs -- to shrink operations as many of its best airline customers are fighting for survival. Rival Airbus SE has also been contemplating steep job cuts after announcing plans to pare production by more than a third.

Boeing told officials at the engineering union to expect cuts of between 15% and 20% of white-collar workers in the Seattle area and Southern California, according to the Puget Sound Business Journal, which reported the discussions earlier. Boeing has already begun paring jobs in Canada and Australia, according to the report.

Calhoun has said he doesn’t expect sales to return to 2019 levels for another three years, or to start growing meaningfully until mid-decade. Boeing has also drawn down a $13.8 billion term loan and issued $25 billion in bonds to build a cash stockpile to help it withstand years of tumult.