Boeing, the aerospace giant based in Arlington, Virginia, has announced significant layoffs affecting nearly 700 employees in Missouri. This move is part of a broader strategy to reduce its global workforce by 10%, or approximately 17,000 jobs, as the company grapples with financial challenges. The layoffs in Missouri will begin on January 17, 2025, impacting workers across several locations, including Berkeley, Hazelwood, St. Charles, and St. Louis.

The decision to cut jobs comes as Boeing continues to face financial difficulties following the 737 Max jetliner crashes in 2018 and 2019, which severely damaged its reputation and financial standing. The company has also been affected by production delays, particularly with the 777X commercial jet, and a recent strike by machinists that lasted seven weeks.

Boeing's financial woes have been compounded by a $6 billion loss reported in the third quarter and scrutiny from the Federal Aviation Administration after a panel blew out of a 737 Max during an Alaska Airlines flight. Despite receiving $129 million in incentives from the state of Missouri over the past decade to maintain and create jobs, Boeing has struggled to secure new business, particularly in its defense sector.

The layoffs will affect a wide range of positions, including engineers, mechanics, and human resource staffers. Boeing has stated that it will provide severance pay, job placement assistance, and subsidized healthcare benefits for up to three months for those affected. However, the company has indicated that more layoffs could occur if financial conditions do not improve.

Boeing's challenges highlight the broader difficulties facing the aerospace industry, as companies navigate economic pressures and shifting market demands. The future of Boeing's operations in Missouri, including a new $1.8 billion assembly plant in Berkeley, remains uncertain as the company seeks to stabilize its financial position and regain its footing in the industry.