Boeing has announced the layoff of 2,199 workers across 25 cities in Washington state, a move that is part of the aerospace company’s broader effort to reduce its global workforce by 10%, or approximately 17,000 jobs.
The cuts, which will primarily affect facilities in the Puget Sound area, are expected to have significant effects on the local economy, including suppliers and industries that depend on Boeing’s workforce.
The majority of layoffs occurred in Everett, where Boeing employs around 35,000 workers. A total of 1,160 positions were eliminated in the city. Other impacted locations in Washington include Renton, Seattle, Tukwila, Auburn, and Kent, with several hundred additional job cuts spread across these cities. Positions affected span a range of roles, including engineers, IT specialists, human resources staff, office administrators, and health and safety workers.
This restructuring follows a difficult year for Boeing, which has faced financial challenges, including a significant loss of $6.2 billion in the third quarter of 2024. The company’s financial troubles have been exacerbated by a series of setbacks, such as the 737 MAX production issues and recent safety concerns. CEO Kelly Ortberg has stated that the layoffs are part of a broader plan to streamline operations and align workforce levels with the company’s “financial reality” and “focused priorities.”
Though the layoffs were not directly related to the recent strike by Boeing’s unionized Machinists, they reflect ongoing efforts to reduce inefficiencies and address overstaffing. Affected employees will remain on payroll until mid-January, with a final layoff date set for January 17, 2025. Boeing has pledged to provide career transition services, subsidized healthcare, and severance pay to those impacted by the cuts.
The job losses are expected to have a ripple effect on Washington’s local economy, particularly in sectors such as car sales, real estate, restaurants, and healthcare, all of which rely on aerospace workers’ spending. Industry observers have noted that Boeing’s suppliers are better positioned to weather these changes, having diversified into other markets.
Boeing’s decision to lay off workers comes after a turbulent period, including the aftermath of two fatal 737 MAX crashes, the pandemic’s impact on air travel, and production delays. As part of efforts to stabilize, Boeing has raised funds through stock sales and is considering divesting non-core businesses.
With input from the Seattle Times, New York Post, USA Today, and Quartz.
