Boeing has proceeded with further layoffs in Washington state and California, cutting hundreds of employees as part of its previously announced workforce reductions aimed at trimming approximately 17,000 jobs, report AP.

According to reports on Monday, nearly 400 employees in Washington and over 500 in California were let go by the aerospace company. These layoffs are part of a broader plan to reduce Boeing's workforce by 10% in the coming months, as the company strives to address financial and regulatory challenges, along with recovering from a nearly two-month machinists’ strike.

Boeing issues layoff notices to 400-plus workers as it begins drastic cuts

CEO Kelly Ortberg clarified that the layoffs were not related to the strike but were instead due to overstaffing. The company began notifying affected workers in November. Notices to state employment agencies revealed that the initial round of layoffs affected around 3,500 employees across the U.S., according to The Seattle Times.

These cuts impacted employees in various roles, including engineers, recruiters, and analysts, across Boeing’s commercial, defense, and global services divisions. The company stated that most laid-off employees would remain on the payroll for about two months and would receive severance packages, career transition support, and subsidized health insurance benefits for up to three months.

“As announced in early October, we are adjusting our workforce levels to align with our financial reality and a more focused set of priorities,” Boeing representatives reiterated regarding the layoffs.

The head of Boeing's defense and space business is out as company tries to fix troubled contracts

Based in Arlington, Virginia, Boeing has been facing financial difficulties since two crashes of its 737 Max aircraft in 2018 and 2019 claimed 346 lives. The company’s reputation and finances were further damaged after an Alaska Airlines plane experienced a fuselage panel detachment in January.