Boeing starts issuing layoff notices as part of plan to cut 17,000 workers globally

Boeing said on Wednesday it is issuing layoff notices starting this week to workers impacted by a broader plan by the heavily indebted planemaker to cut 17,000 jobs, or 10 per cent of its global workforce.

US staff receiving the notices this week will stay on Boeing's payroll until January to comply with federal requirements that give workers 60 days' notice prior to ending their employment. News that Boeing would send out the Worker Adjustment and Retraining Notification in mid-November was widely expected.

“As previously announced, we are adjusting our workforce levels to align with our financial reality and a more focused set of priorities," Boeing said in a statement. "We are committed to ensuring our employees have support during this challenging time."

Meanwhile, Boeing said on Tuesday that it delivered 14 aircraft in October, but production will likely take several weeks to return to normal after a worker strike that hit operations at two major assembly plants.

In the first 10 months of the year, Boeing said it delivered 305 aircraft, down from 405 in the same period last year.

The company also received 63 gross orders in October.

About 33,000 workers in the US Pacific Northwest walked off the job on September 13 after overwhelmingly rejecting an initial contract offer, sparking the costliest strike in the United States this century.

After a stoppage of more than seven weeks — costing the aviation giant billions — the International Association of Machinists and Aerospace Workers (IAM) District 751 said it approved a new contract proposal.

Boeing staff could return as soon as November 6 and must be back on the job by November 12, according to the IAM.

Production of the company's best-selling 737 MAX, as well as the 777 jet, were halted by the strike. Production of the 787 Dreamliner carried on at a plant on the east coast of the United States.

Boeing said on Tuesday that it would be several weeks before it fully restarts airplane production, given that restarting a manufacturing line is a multi-stage process.

The company added that it was working on safely restarting operations in Washington and Oregon.

Boeing's gross orders for October included 40 737 MAX 8 aircraft for Avia Solutions Group, in a transaction valued at about $4.9 billion.

Avia's first firm order with the aviation giant comes with an option to add another 40 jets later, Boeing and Avia said in a statement on Tuesday.