Boeing Resumes 737 MAX Production; Announces First Round of Involuntary Layoffs Affecting 6,770
Boeing announced on Wednesday that they will gradually resume production of the 737 MAX in their Renton, Washington Factory. In a separate press release the company announced a first round of involuntary layoffs that will impact 6,770 U.S. Team Members.
Yesterday (May 27, 2020), Boeing announced that they will gradually resume production of their best selling 737 MAX aircraft at their Renton, Washington factory. The company will build the airplanes at a low rate as they implement dozens of initiatives focused on workplace safety and product quality. During the temporary suspension of production, which began last January, Boeing engineers and mechanics collaborated to standardize work packages in each factory position. They also implemented new kitting processes so employees have everything needed at their fingertips, which will result in enhanced productivity. In Wednesday’s announcement, Boeing’s VP and General Manager of the 737 Program, Walt Odisho said,
“We’ve been on a continuous journey to evolve our production system and make it even stronger. These initiatives are the next step in creating the optimal build environment for the 737 MAX.
Also commenting on Wednesday’s announcement, Boeing’s VP 737 Manufacturing, Scott Stocker added,
“The steps we’ve taken in the factory will help drive our goal of 100 percent quality for our customers while supporting our ongoing commitment to workplace safety.”
In a separate press release on Wednesday, Boeing announced the start of involuntary layoffs which will impact 6,770 U.S. team members. The affected U.S. employees will receive severance pay, COBRA health care coverage and career transition services. In yesterday’s workforce reduction announcement, Boeing’s President and CEO, Dave Calhoun said in part,
“The COVID-19 pandemic’s devastating impact on the entire airline industry means a deep cut in the number of commercial jets and services our customers will need over the next few years, which in turn means fewer jobs on our lines and in our offices. We have done our very best to protect the needs of our commercial airline customers over the next several years as they begin their path to recovery. I wish there was some other way. For those of you who are notified, I want to offer my personal gratitude for the contributions you have made to Boeing, and I wish you and your families the very best.”