In 24 hours, the Boeing machinists who have not reported back to the production line after being on strike for 53 days will have to clock in again.
Their return comes as Boeing prepares to announce companywide layoffs. KIRO 7′s Ranji Sinha learns why the Layoffs could help Boeing.
As Boeing returns to building jets, it’s also preparing for layoffs.
The aerospace giant plans to cut 17,000 employees, about 10 percent of its global workforce.
Aviation Industry analyst Scott Hamilton says Boeing is bloated and needs to lose some weight—and that these cuts will be tough but necessary.
“It was said to be triggered by the strike as a cost-cutting measure,” Hamilton said.
Workers who were on strike for more than 50 days are heading back to work. Tuesday, Nov. 12, is the last day to return to the production line.
Hamilton suspects that many workers on the picket line may not get the axe.
One machinist who spoke with KIRO 7 on the day of the final vote on the contract between Boeing and the Union told KIRO 7 some signed off on the deal despite concerns about being let go.
James Winston said some people really wanted to get back to work. “We have a lot of new guys that they hired on befrore the strike happened, they dangled the 12k carrot so 12k is nothing to sneeze at especially if you might be up on the chopping block first,” Winston said.
At least one source tells me Boeing’s frontline workers are sorely needed, as jets are in various stages of completion, and only they can finish the job.
Hamilton says Boeing’s cuts will be relatively deep, but who will get cut remains to be seen. “Boeing hasn’t been specific about where these layoffs are going to happen,” Hamilton said.
Hamilton suspects white-collar positions may be cut, and he says the company is roughly 50 billion dollars in debt.
So, production needs to ramp up. He says cutting 17,000 positions is tough but could help the company long term. “Boeing has to become a leaner, more competitive company who can compete effectively with Airbus …It will take Boeing a decade to fully recover to its pre-Max grounding level,” Hamilton said.