Boeing has recently issued layoff notifications to over 400 members of its professional aerospace labor union, marking a significant step in the company’s ongoing workforce restructuring amidst financial hardships and regulatory challenges. This decision follows an eight-week strike by its Machinists union, further complicating the company’s recovery efforts.

The layoffs were officially communicated last week to members of the Society of Professional Engineering Employees in Aerospace (SPEEA), according to reports. Affected employees will continue to receive paychecks until mid-January, providing a temporary cushion as they transition.

In an announcement made in October, Boeing indicated plans to reduce its workforce by approximately 10%, translating to about 17,000 job cuts over the coming months. CEO Kelly Ortberg emphasized the necessity of adjusting workforce levels to better fit the company’s current financial situation.

The SPEEA union confirmed that 438 of its members would be impacted, noted in the local chapter where Boeing boasts around 17,000 employees mainly in Washington State but also in other regions like Oregon, California, and Utah. Out of those affected, 218 belong to SPEEA’s professional unit, which includes engineers and scientists. The remaining individuals are part of the technical unit, comprised of analysts, planners, technicians, and skilled tradespeople.

Employees who are affected will have access to career transition services along with subsidized healthcare benefits for a duration of up to three months. Additionally, severance packages will be provided, typically calculated as one week of pay for each year of service at Boeing.

After the conclusion of the strike, machinists have slowly started returning to work this month. While the strike had substantial implications for Boeing’s financial health, Ortberg clarified during a conference call with analysts that the layoffs stemmed from an overstaffing situation rather than being directly caused by the strike itself.

Boeing, headquartered in Arlington, Virginia, has been grappling with both financial and regulatory issues, particularly following an incident in January when a panel detached from the fuselage of an Alaska Airlines aircraft. As a result, production rates have dropped considerably, and the Federal Aviation Administration has limited the production of the 737 MAX to just 38 planes per month, a target Boeing has yet to achieve.