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Boeing Ends Strike, Announces Layoffs
Boeing resolves a strike with its engineers but announces plans for significant job cuts, despite paying back lost wages.
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BoeingS&P Global RatingsLsegReuters
Kelly Ortberg
- What did Boeing's CEO say about the situation?
- Boeing's CEO, Kelly Ortberg, announced the job cuts and back pay for striking employees. Ortberg also stated that the company is reviewing operations and considering selling assets to focus on core businesses.
- What actions is Boeing taking regarding its workforce?
- Despite the agreement, Boeing plans to cut its global workforce by approximately 10%, resulting in 17,000 job losses. This is part of a restructuring effort to improve competitiveness.
- What was the financial impact of the strike on Boeing?
- The strike cost Boeing over \$1 billion, according to S&P Global Ratings, and contributed to the company's first-half losses exceeding \$7 billion. Boeing also raised \$24 billion in capital to improve its financial standing.
- What agreement did Boeing reach with its striking engineers?
- Boeing reached a labor agreement with its striking engineers, ending a nearly two-month strike. The agreement includes back pay for lost wages during the strike.
- What will happen to the striking engineers after the agreement?
- The striking engineers will receive back pay and a 38% raise over four years, along with a \$12,000 bonus. They are expected to return to work on November 12th, but will receive 60-day layoff notices on November 15th.