On November 13, Boeing stated that it is issuing layoff notices starting from this week to workers impacted by a broader plan by the financially challenged plane-maker to reduce 17,000 jobs, or 10 per cent of its global workforce, according to a detailed report by Reuters.

US staff receiving the notices this week will stay on Boeing's payroll until January to abide with federal requirements that give workers 60 days' notice before ending their employment.

Boeing would send out the Worker Adjustment and Retraining Notification (WARN) in mid-November was widely expected by market participants and investors, after the recent end to one of the most challenging worker strikes in company history, the Reuters report explained further. <o:p></o:p>

“As previously announced, we are adjusting our workforce levels to align with our financial reality and a more focused set of priorities," Boeing explained in a statement. "We are committed to ensuring our employees have support during this challenging time."<o:p></o:p>

Brief history of Boeing<o:p></o:p>

The Boeing Company, is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, and missiles worldwide. It is a leading player manufacturer of such components and has a global reputation. <o:p></o:p>

The company also provides leasing and product support services. Boeing is among the largest global aerospace manufacturers. Further, it is the fourth-largest defense contractor in the world based on 2022 revenue and is the largest exporter in the United States by dollar value.<o:p></o:p>

Boeing was founded by William E. Boeing in Seattle, Washington, on July 15, 1916. The present corporation is the result of the merger of Boeing with McDonnell Douglas on August 1, 1997.<o:p></o:p>

What is the reason behind this move by the major airline?<o:p></o:p>

Recently, Boeing was challenged by a strike of about 30,000 workers. This strike took place on September 13 according to reports. It was also the first strikes in 16 years.

Around 30,000 members of the International Association of Machinists and Aerospace Workers (IAM), who build Boeing’s 737 MAX and other planes in Seattle and Portland, took part in a vote on their first full contract in 16 years. The workers turned down the offer, with a strong majority in favour of striking.<o:p></o:p>

When did the strike end?<o:p></o:p>

Since then, Boeing has conducted several rounds of discussions and negotiations with the working force to try to control the situation. <o:p></o:p>

Boeing machinists approved a new labor deal on November 4, ending a costly and very challenging seven-week strike for the airline that halted most of the company’s aircraft production, worsening its mounting losses.

Details of the latest agreement between Boeing and workers

Machinists voted 59 per cent in favor of the new contract, which includes 38 per cent wage increases over four years and other improvements, according to a CNBC report. <o:p></o:p>

Now as things stand it is to be seen how the company faces the upcoming challenges of managing its finances along with continuously keeping its work force intact and motivated along with laying off thousands due to financial constraints. <o:p></o:p>

Market participants and global investors will keenly follow these developments for clues on taking investment calls on the leading airline player. <o:p></o:p>

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On November 13, Boeing stated that it is issuing layoff notices starting from this week to workers impacted by a broader plan by the financially challenged plane-maker to reduce 17,000 jobs, or 10 per cent of its global workforce, according to a detailed report by Reuters.

On November 13, Boeing stated that it is issuing layoff notices starting from this week to workers impacted by a broader plan by the financially challenged plane-maker to reduce 17,000 jobs, or 10 per cent of its global workforce, according to a detailed report by Reuters. US staff receiving the notices this week will stay on Boeing's payroll until January to abide with federal requirements that give workers 60 days' notice before ending their employment. Boeing would send out the Worker Adjustment and Retraining Notification (WARN) in mid-November was widely expected by market participants and investors, after the recent end to one of the most challenging worker strikes in company history, the Reuters report explained further. “As previously announced, we are adjusting our workforce levels to align with our financial reality and a more focused set of priorities," Boeing explained in a statement. "We are committed to ensuring our employees have support during this challenging time." Brief history of Boeing The Boeing Company, is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, and missiles worldwide. It is a leading player manufacturer of such components and has a global reputation. The company also provides leasing and product support services. Boeing is among the largest global aerospace manufacturers. Further, it is the fourth-largest defense contractor in the world based on 2022 revenue and is the largest exporter in the United States by dollar value. Boeing was founded by William E. Boeing in Seattle, Washington, on July 15, 1916. The present corporation is the result of the merger of Boeing with McDonnell Douglas on August 1, 1997. What is the reason behind this move by the major airline? Recently, Boeing was challenged by a strike of about 30,000 workers. This strike took place on September 13 according to reports. It was also the first strikes in 16 years. Around 30,000 members of the International Association of Machinists and Aerospace Workers (IAM), who build Boeing’s 737 MAX and other planes in Seattle and Portland, took part in a vote on their first full contract in 16 years. The workers turned down the offer, with a strong majority in favour of striking. When did the strike end? Since then, Boeing has conducted several rounds of discussions and negotiations with the working force to try to control the situation. Boeing machinists approved a new labor deal on November 4, ending a costly and very challenging seven-week strike for the airline that halted most of the company’s aircraft production, worsening its mounting losses. Details of the latest agreement between Boeing and workers Machinists voted 59 per cent in favor of the new contract, which includes 38 per cent wage increases over four years and other improvements, according to a CNBC report. Now as things stand it is to be seen how the company faces the upcoming challenges of managing its finances along with continuously keeping its work force intact and motivated along with laying off thousands due to financial constraints. Market participants and global investors will keenly follow these developments for clues on taking investment calls on the leading airline player.

Boeing begins sending layoff notices in effort to reduce workforce by 17,000 employees

Boeing is set to raise up to $25 billion to strengthen its balance sheet. In a recent filing, the company announced a $10 billion credit agreement with banks amid warnings from credit rating agencies about a potential loss of its investment-grade status as detailed in a report.&nbsp;

Details of the plan to raise capital

On October 15, Boeing disclosed plans to raise this capital through shares or debt over the next three years, aiming to improve liquidity as it grapples with a prolonged machinist strike and ongoing issues across its aircraft programs, as reported by CNBC. Boeing stated that this universal shelf registration would allow the company to explore various capital options to support its balance sheet during this period.

Since the beginning of the year, Boeing's shares have plummeted nearly 42 per cent. Analysts from Bank of America project that the company will raise between $10 billion and $15 billion in equity. Analyst Ron Epstein noted that Boeing is likely to prioritize equity offerings initially, which would help stabilize its balance sheet while keeping the option open for future debt issuance with a lower risk of credit downgrades.

Fitch Ratings commented that Boeing's announcement would enhance financial flexibility and alleviate immediate liquidity concerns. The company is under pressure from credit rating agencies, including S&amp;P Global Ratings, which estimated last week that the machinist strike is costing Boeing over $1 billion each month.

Negotiations between the two sides remain stalled. On Tuesday, four US lawmakers from Washington state urged Boeing’s new CEO Kelly Ortberg and union leaders Jon Holden and Brandon Bryant to reach a resolution. They expressed hope for a fair and sustainable agreement that acknowledges the machinist workforce's significance to Boeing's future and the broader aerospace economy in the Pacific Northwest.

Additionally, Boeing confirmed its $10 billion credit agreement with a consortium of banks, stating that it provides short-term liquidity as the company navigates challenging conditions. The firm has not yet utilised this facility or its existing credit revolver.

In a cost-cutting measure, Boeing CEO Ortberg announced plans to lay off approximately 17,000 employees, or 10 per cent of Boeing's global workforce. He emphasised the need for a realistic approach to achieving key recovery milestones and focusing resources on core operations.

This announcement coincided with preliminary financial results revealing significant losses and $5 billion in charges within Boeing’s defense and commercial airplane divisions. Ortberg is scheduled to hold his first quarterly investor call since taking over as CEO in August on October 23.

Boeing is set to raise up to $25 billion to strengthen its balance sheet. In a recent filing, the company announced a $10 billion credit agreement with banks amid warnings from credit rating agencies about a potential loss of its investment-grade status as detailed in a report.

Boeing is set to raise up to $25 billion to strengthen its balance sheet. In a recent filing, the company announced a $10 billion credit agreement with banks amid warnings from credit rating agencies about a potential loss of its investment-grade status as detailed in a report. Details of the plan to raise capital On October 15, Boeing disclosed plans to raise this capital through shares or debt over the next three years, aiming to improve liquidity as it grapples with a prolonged machinist strike and ongoing issues across its aircraft programs, as reported by CNBC. Boeing stated that this universal shelf registration would allow the company to explore various capital options to support its balance sheet during this period. Since the beginning of the year, Boeing's shares have plummeted nearly 42 per cent. Analysts from Bank of America project that the company will raise between $10 billion and $15 billion in equity. Analyst Ron Epstein noted that Boeing is likely to prioritize equity offerings initially, which would help stabilize its balance sheet while keeping the option open for future debt issuance with a lower risk of credit downgrades. Fitch Ratings commented that Boeing's announcement would enhance financial flexibility and alleviate immediate liquidity concerns. The company is under pressure from credit rating agencies, including S&P Global Ratings, which estimated last week that the machinist strike is costing Boeing over $1 billion each month. Negotiations between the two sides remain stalled. On Tuesday, four US lawmakers from Washington state urged Boeing’s new CEO Kelly Ortberg and union leaders Jon Holden and Brandon Bryant to reach a resolution. They expressed hope for a fair and sustainable agreement that acknowledges the machinist workforce's significance to Boeing's future and the broader aerospace economy in the Pacific Northwest. Additionally, Boeing confirmed its $10 billion credit agreement with a consortium of banks, stating that it provides short-term liquidity as the company navigates challenging conditions. The firm has not yet utilised this facility or its existing credit revolver. In a cost-cutting measure, Boeing CEO Ortberg announced plans to lay off approximately 17,000 employees, or 10 per cent of Boeing's global workforce. He emphasised the need for a realistic approach to achieving key recovery milestones and focusing resources on core operations. This announcement coincided with preliminary financial results revealing significant losses and $5 billion in charges within Boeing’s defense and commercial airplane divisions. Ortberg is scheduled to hold his first quarterly investor call since taking over as CEO in August on October 23.

Boeing plans to raise up to $25 billion amid financial challenges and machinist strike

The union representing thousands of striking Boeing workers has criticized what the aircraft manufacturing giant said was its "best and final" pay offer that proposed a 30 per cent rise over four years according to a detailed report by BBC.

The new offer also included reinstatement of a performance bonus and better retirement benefits. Still, the International Association of Machinists and Aerospace Workers (IAM) said the offer was not negotiated with the union and that "it was thrown at us without any discussion" - a claim Boeing denies.

More than 30,000 Boeing workers went on strike earlier this month after rejecting a 25 per cent pay rise offer. Boasting of listening to its employees and their concerns, Boeing today presented its best and final offer, says the aircraft manufacturing giant through a letter.

Double the value of a one-off signing bonus<o:p></o:p>

The proposal doubles the value of a one-off signing bonus upon a new pay deal as $6,000 in return. Boeing said this offer is dependent on ratification by union members by midnight Pacific time on Friday 27 September (7 am GMT on Saturday 28 September). But IAM claims Boeing's new offer was delivered directly to union members and news media outlets without discussing it with the representatives of the union.

"This tactic is a blatant show of disrespect to you - our members - and the bargaining process," IAM said in a post on X, formerly known as Twitter.

The union said it would not conduct a vote of its membership before Boeing's deadline. Further, responding to that, Boeing told the BBC: "We have negotiated in good faith with the IAM since formal negotiations commenced in March."

"We presented the offer to the union first and then openly provided all the information to our employees," it added.

The back story of the dispute<o:p></o:p>

Boeing workers voted for a strike on September 13, after rejecting a new contract deal offering a 25 per cent pay rise over four years. Boeing, makers of 737 Max and other aircraft, faces a combined union ruling down its offer in a vote meant to decide whether its rank-and-file workers do walk off the job or not.

The union had been demanding several changes to workers' packages: a 40 per cent pay raise was one of them. All but five per cent of the members of the union, which makes the 737 Max and 777 among others, voted down Boeing's initial offer of those voting, 96 percent backed strike action until they have a new agreement.

Impact of the strike on Boeing<o:p></o:p>

The strike is likely to cost Boeing billions of dollars, increasing the crisis at a company that was already facing several difficulties. The impacts are already apparent across the industry and wider US economy too as Boeing has halted shipments of most parts as well as taken other cost-cutting measures. To save money, the company has already suspended the jobs of tens of thousands of staff.

It has also declared that US-based executives, managers, and employees would have to undergo one week of furlough every four weeks until the lockout lasts. The ruling government officials are acting as mediators between both parties.

The union representing thousands of striking Boeing workers has criticized what the aircraft manufacturing giant said was its "best and final" pay offer that proposed a 30 per cent rise over four years according to a detailed report by BBC.

The union representing thousands of striking Boeing workers has criticized what the aircraft manufacturing giant said was its "best and final" pay offer that proposed a 30 per cent rise over four years according to a detailed report by BBC. The new offer also included reinstatement of a performance bonus and better retirement benefits. Still, the International Association of Machinists and Aerospace Workers (IAM) said the offer was not negotiated with the union and that "it was thrown at us without any discussion" - a claim Boeing denies. More than 30,000 Boeing workers went on strike earlier this month after rejecting a 25 per cent pay rise offer. Boasting of listening to its employees and their concerns, Boeing today presented its best and final offer, says the aircraft manufacturing giant through a letter. Double the value of a one-off signing bonus The proposal doubles the value of a one-off signing bonus upon a new pay deal as $6,000 in return. Boeing said this offer is dependent on ratification by union members by midnight Pacific time on Friday 27 September (7 am GMT on Saturday 28 September). But IAM claims Boeing's new offer was delivered directly to union members and news media outlets without discussing it with the representatives of the union. "This tactic is a blatant show of disrespect to you - our members - and the bargaining process," IAM said in a post on X, formerly known as Twitter. The union said it would not conduct a vote of its membership before Boeing's deadline. Further, responding to that, Boeing told the BBC: "We have negotiated in good faith with the IAM since formal negotiations commenced in March." "We presented the offer to the union first and then openly provided all the information to our employees," it added. The back story of the dispute Boeing workers voted for a strike on September 13, after rejecting a new contract deal offering a 25 per cent pay rise over four years. Boeing, makers of 737 Max and other aircraft, faces a combined union ruling down its offer in a vote meant to decide whether its rank-and-file workers do walk off the job or not. The union had been demanding several changes to workers' packages: a 40 per cent pay raise was one of them. All but five per cent of the members of the union, which makes the 737 Max and 777 among others, voted down Boeing's initial offer of those voting, 96 percent backed strike action until they have a new agreement. Impact of the strike on Boeing The strike is likely to cost Boeing billions of dollars, increasing the crisis at a company that was already facing several difficulties. The impacts are already apparent across the industry and wider US economy too as Boeing has halted shipments of most parts as well as taken other cost-cutting measures. To save money, the company has already suspended the jobs of tens of thousands of staff. It has also declared that US-based executives, managers, and employees would have to undergo one week of furlough every four weeks until the lockout lasts. The ruling government officials are acting as mediators between both parties.

Boeing union hits out over 'final' 30% pay rise offer

Boeing is offering a second voluntarily layoff package to its employees as the coronavirus pandemic has forced the plane manufacturer to deepen its workforce cuts beyond its original plan of 10% in April.

Coronavirus pandemic sapped Boeing's new jets demand: Second layoff package out

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boeing layoffs

Boeing begins sending layoff notices in effort to reduce workforce by 17,000 employees

Boeing plans to raise up to $25 billion amid financial challenges and machinist strike

Boeing union hits out over 'final' 30% pay rise offer

Coronavirus pandemic sapped Boeing's new jets demand: Second layoff package out