After 6,600 jobs cut this year, internal memo describes coming strategy of attrition, voluntary separation offers
- Reduced sales, stiff competition
- One week’s pay per year of service
- Possible “involuntary separations”
Boeing will cut the production rate for its 777 program from seven jets per month to five in August 2017, which is likely to reduce employment at assembly operations in Everett and Frederickson, Wash.
Boeing Co. executives have advised employees at Boeing Commercial Airplanes that the division will continue reducing employment levels during 2017. “We will continue working aggressively across BCA to reduce non-labor costs,” Boeing vice chairman Ray Conner and Commercial Airplanes CEO Kevin McAllister stated in an internal communication, according to reports. “We will need to continue to reduce the size of our workforce next year.”
In their internal memo, Conner and McAllister explained that “fewer sales opportunities and tough competition” require the OEM to in 2017.
A Boeing spokesman said the jet builder has not set a target number for jobs to be eliminated.
During the current year, Boeing Commercial Airplanes has eliminated more than 6,600 jobs in Washington State. The two executives’ message explained the workforce has been reduced over 8% this year, and the total of executives and managers has been reduced by 10%.
In 2017, employment will be reduced by attrition, by leaving open positions unfilled, and via a voluntary buyout program to be announced early next year. Employees will be invited to separate from Boeing in exchange for one week’s pay in exchange for each year of employment service, up to a maximum of 26 weeks.
In their memo, Conner and McAllister said all operating units within Commercial Airplanes would review 2017 budget and employment plans in preparation for identifying employees who are eligible for voluntary buyouts.
According to the same reports, the internal memo also noted that Boeing may implement “involuntary layoffs” to achieve its cost-saving targets.