Boeing layoff tally reaches 245, more expected

EVERETT — The Boeing Co. laid off 245 workers this month, according to a notification filed with the state.

The tally includes 173 union-represented employees who were laid off March 17. It is not clear when the 72 non-union workers were laid off. The company did not immediately respond to request for comment.

The 245 workers will be let go by May 19, according to the state notification.

The cuts come as Boeing trims its workforce to reduce labor costs through buyouts, attrition, limited hiring freezes and layoffs. Company executives have said they want to limit layoffs. So far, they appear to be succeeding. While the company has laid off several hundred workers over the past year, its workforce has dropped by more than 13,600 since the beginning of 2016.

Officials from several unions representing Boeing workers have said they expect more layoffs to be announced in April.

The company is aggressively squeezing down expenses in other areas, including supplier prices, to bolster its bottom line against market pressures, including less cash coming in from its 777 program.

The twin-aisle airplane was a big earner for Boeing until recent years as the company transitions from the classic 777 airplane family to its successor, the 777X. Orders have dropped for the classic 777 models. Boeing has had to offer customers steep discounts and cut 777 production. So the company is earning less on each plane and making fewer of them.

The company faces other pressures to its bottom line. At the same time, company leaders have promised to significantly boost profits and cash for shareholders. Investment analysts who track Boeing say the company has to cut costs to make good on those pledges. Even after stomping down expenses, there is no consensus among Wall Street analysts that Boeing will be able to deliver so much value to investors.

On March 16, the company offered a new round of buyouts to many white-collar workers around Puget Sound and in Oregon. Earlier this year, about 1,800 union workers took buyouts from Boeing. The company has not said how many non-union employees accepted the offer.

Earlier this month, Boeing reported that the company’s chief executive, Dennis Muilenburg, received about $15 million in compensation in 2016, up from $13.2 million the prior year.

Also, Kevin McAllister, the new head of Boeing’s commercial airplanes division, received a $2 million signing bonus after joining the company in November. He also received 120,000 Boeing shares to make up for retirement benefits and unvested stock awards he lost when he left General Electric. The Boeing shares were worth $17.8 million at the time. When the stock market opened Friday, the shares were worth $21.2 million.

Dan Catchpole: 425-339-3454; dcatchpole@heraldnet.com; Twitter: @dcatchpole.

Talk to us

More in Herald Business Journal

Funko warehouse in Everett. (Kevin Clark / The Herald)
Funko to close Everett warehouses, shift work to Arizona

The company headquarters are currently in downtown Everett, but distribution will move to a Phoenix suburb.

FILE - In this Monday, March 1, 2021 file photo, The first Alaska Airlines passenger flight on a Boeing 737-9 Max airplane takes off on a flight to San Diego from Seattle-Tacoma International Airport in Seattle. A Boeing pilot involved in testing the 737 Max jetliner was indicted Thursday, Oct. 14,2021 by a federal grand jury on charges of deceiving safety regulators who were evaluating the plane, which was later involved in two deadly crashes. (AP Photo/Ted S. Warren, File)
Alaska Airlines to add Boeing 737s to the Paine Field fleet

It’s a sign of the growing popularity of flying from Everett. So far, much smaller Embraer E175s have been the rule.

FILE - Washington Attorney General Bob Ferguson talks to reporters, Monday, Aug. 26, 2019, during a news conference in Seattle. In a 5-4 decision Thursday, Jan. 20, 2022, the Washington Supreme Court upheld an $18 million campaign finance penalty against the Consumer Brands Association, formerly known as the Grocery Manufacturers Association. Ferguson sued the group in 2013, alleging that it spent $11 million to oppose a ballot initiative without registering as a political committee or disclosing the source of the money. (AP Photo/Ted S. Warren)
Washington justices uphold $18M fine in GMO-labeling case

Big grocers funneled dark money into a campaign against genetically modified labels on food packaging.

Mara Wiltshire, left, celebrates her first place finish in Mario Cart against her son Miles Jenkins, 7, as Calvin Jenkins, 5, looking on Friday evening at their home in Everett, Washington on January 7, 2022.  (Kevin Clark / The Herald)
Child care’s heightened burden takes parents out of workforce

One Snohomish County mom said she couldn’t return to work “because I didn’t have child care and I wouldn’t be able to afford it.”

In this photo taken May 17, 2017, wine barrels are shown at a vineyard adjacent to the Walla Walla Vintners winery in Walla Walla, Wash. The remote southeastern Washington town of Walla Walla - which used to be best known for sweet onions and as home of the state penitentiary - has now reinvented itself into a center of premium wines and wine tourism. (AP Photo/Nicholas K. Geranios)
More sustainable Washington wines are on the way

Labels will indicate grape growers met guidelines in 9 areas, including water, pest and labor practices.

A sign bearing the corporate logo hangs in the window of a Starbucks open only to take-away customers in this photograph taken Monday, April 26, 2021, in southeast Denver.  Starbucks is no longer requiring its U.S. workers to be vaccinated against COVID-19, reversing a policy it announced earlier this month. The Seattle coffee giant says, Wednesday, Jan. 19, 2022,  it's responding to last week’s ruling by the U.S. Supreme Court.  (AP Photo/David Zalubowski)
Starbucks nixes vaccine mandate after Supreme Court ruling

The move reverses a policy the coffee company announced earlier this month.

Logo for news use featuring the municipality of Stanwood in Snohomish County, Washington. 220118
Regulators OK doubling of composting operation in Stanwood

Lenz Enterprises can now handle 150,000 tons a year. Residents worry odors will be a problem.

Christian Sayre
Everett bar owner arrested again on new sexual assault charges

Christian Sayre, longtime owner of The Anchor Pub, was charged Friday with 10 counts of felony sex offenses.

FILE - Bill Gates speaks during the Global Investment Summit at the Science Museum, London, Tuesday, Oct, 19, 2021. A small city in the top U.S. coal-mining state of Wyoming will be home to a Bill Gates-backed experimental nuclear power project near a coal-fired power plant that will soon close, officials announced Tuesday, Nov. 16, 2021. (Leon Neal/Pool Photo via AP, File)
Microsoft to review workplace harassment, including Bill Gates allegations

One engineer wrote in a letter that she had a sexual relationship with Gates over several years.

Most Read