Boeing in Turbulence Mode: Mass Layoffs and Employee Protests

Boeing finds itself in turbulent times. According to internal documents, the company plans to lay off 17,000 employees by January 2025 to achieve a reduction in the workforce by a total of 10 percent. While various levels and management will be affected by job cuts, production and maintenance employees are to be spared. Particularly noteworthy is that striking union members of the International Association of Machinists and Aerospace Workers (IAM) in the northwestern United States are currently not affected by the reductions. Boyan Novakov, Boeing's communications director, confirmed that the reductions will affect both unionized and non-unionized employees. This prompted sharp criticism from the IAM, whose international president Brian Bryant condemned the decision as "corporate greed." In light of the wave of layoffs, union members, including prominent politicians such as U.S. Senator Maria Cantwell and U.S. Representative Pramila Jayapal, are planning a protest rally in Seattle. Boeing's financial situation, pressured by projected losses of $5 billion in the third quarter, is forcing the company to seek $25 billion from the capital market. These measures could strengthen Boeing's negotiating position against the demanding union members. At the same time, Emirates airline president Sir Tim Clark warned that Boeing is on a perilous course, which could lead to bankruptcy without swift capital acquisition.