ONGOING BOEING LAYOFFS HAVE VETERANS & THE NATIONAL DEFENSE BRACING FOR 2025 IMPACT


By bblouin
Airplane in light of Boeing layoffs.

The Boeing Company is well known in the world of aerospace and defense. Besides getting you to your business convention, home for the holidays, or on your dream vacation, the company has a heavy hand in our nation’s defense. Boeing layoffs were announced in October of 2024, and although they were set to begin in early 2025, 2,200 employees in Washington alone are set to have a not-so-happy holidays as they were laid off this week.

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Is Boeing Doing Layoffs​ in 2025?

Mid-January will see a round of Boeing layoffs but in Washington. However, it has now been released that Boeing is planning another round of layoffs just days before Christmas. Now, workers are preparing to be cut in what has been anything but a positive year for the aerospace and defense giant.

As of this writing, Boeing’s stock is down over 44% year-to-date as it’s endured many setbacks, and now, layoffs are coming as an attempt to right the ship.

Initially, the layoffs Boeing was planning were expected to be broad but not affect engineers and production workers. However, this is no longer the case. Now, everyone could potentially receive a pink slip in the coming months.

Boeing CEO Kelly Ortberg is focusing on becoming “a leaner, more focused organization,” which he hopes to create by cutting 10% of the workforce.

Concerns involving Boeing and layoffs from the military would come from many directions including the fact that R&D is expected to suffer, as well as production. This all comes as the company has a backlog of nearly 5,500 airplanes alone.

The Boeing Company layoffs could also affect white-collar workers, particularly those who are still working remotely as the CEO is looking to bring everyone on the same page.

Many employees not directly putting together planes may fall under “overhead” which is exactly what Boeing is looking to cut.

Therefore, even though the layoffs will affect around 10% of the company’s total workforce, remote workers may see a 30% cut to their teams. On the other hand, teams putting the actual planes together will see much lower cut rates.

Strikes, Hard Decisions, and a Bad Year of Press

For over 53 days, the 2024 Boeing machinists strike raged on, adding to the company’s problems and slowing down production.

Boeing’s union workers secured a 38% wage increase, benefiting 33,000 members, and marking a critical moment for the struggling company.

The deal comes as Boeing faces a $6 billion third-quarter loss, one of the worst in its history. This is largely due to the strike halting production in the Pacific Northwest.

Despite the work stoppage, Boeing chose not to lay off Machinists during the strike, avoiding further tension in negotiations.

With the strike ending on November 4, Boeing aims to ramp up production quickly, but some Machinists may still face job cuts during the layoffs.

The company urgently needs to increase production rates and generate cash flow to recover from its financial woes.

Boeing’s recent hiring surge of mechanics anticipated higher production rates, which have yet to materialize.

This agreement marks a pivotal step for Boeing as it works to regain stability and operational momentum.

Considering the now infamous Alaska Flight 1282 incident in January 2024 involving a door plug that blew out after takeoff, the Federal Aviation Administration (FAA) is keeping a close eye on how Boeing decides to ramp up production to ensure quality and safety are maintained.

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Boeing Layoffs to Impact National Defense, Veteran Workforce

Boeing ranks among the top five defense contractors used by the United States. In 2024 alone, the company gained billions in contracts from the U.S. Air Force and U.S. Space Force alone.

However, the layoffs at Boeing are aiming to take away talent from military programs, including the engineers involved with the creation of the F-15 and F/A-18 jet fighters and the Navy’s P-8 submarine hunter.

It’s worth mentioning that this comes at a time in which naval and aerial warfare continues to be the focal point in many defense circles as threats emerge in the Indo-Pacific region—specifically China.

Boeing and layoffs are never a good thing for the military; however, they’re also impactful for the Veteran community as well.

There are over 18,000 Vets who work for Boeing, equated to anywhere between 14% and 15% of the company’s total workforce.

It makes a lot of sense that people with military experience would find work in the civilian workforce within the defense industry.

Not only is there a lot of overlap in practical, applicable skills but Veterans provide a first-hand experience you can’t replicate even from the brightest, most experienced civilian minds.

From leaders in Washington to the Veterans working to put food on their families' tables, the Boeing layoffs and their effects are going to be something to watch out for leading up to 2025 and beyond.

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