Boeing Severance Package — Calculator + 2024-2025 Layoff Benchmark
By Severance Calculator Editorial · Updated
What Boeing has historically paid
Boeing's largest single workforce reduction in recent history was announced on October 11, 2024, by newly appointed CEO Kelly Ortberg in an all-employee memo. Ortberg wrote: 'Our business is in a difficult position, and it is hard to overstate the challenges we face together' and 'over the coming months, we are planning to reduce the size of our total workforce by roughly 10 percent. These reductions will include executives, managers and employees.' The approximately 17,000-person reduction came against a backdrop of a 57-day IAM 751 machinists strike (September–November 2024), billions in quarterly losses, and ongoing safety scrutiny following the January 2024 737 MAX 9 door plug incident. **Severance entitlements at Boeing depend on union membership — there are three distinct regimes:** **1. IAM 751 Unionized Machinists (the largest group).** IAM District 751 represents approximately 32,000 Boeing machinists primarily in Washington state. The 2024 collective bargaining agreement — ratified after the 57-day strike ended in November 2024 — governs their layoff benefits. Per IAM 751 layoff resources, the standard benefit is one week of pay for every full year of service, capped at 26 weeks. Importantly, employees who accept a lump-sum layoff benefit under this formula forfeit their seniority and recall rights; employees who do not take the lump sum retain recall rights for up to four years and remain eligible for benefits reinstatement if recalled. IAM 751 members laid off during the October 2024 wave were initially excluded from the first phase of notices, because Boeing could not lay off striking workers; non-union and management employees received the first WARN notices. **2. SPEEA Engineering Union.** The Society of Professional Engineering Employees in Aerospace represents approximately 17,000 Boeing engineers and technical workers, primarily in Washington state. SPEEA's collective bargaining agreement provides comparable layoff benefits to IAM 751, including severance pay (approximately one week per year of service) and three months of subsidized healthcare following separation. Fortune reporting (November 2024) on SPEEA layoffs confirmed that affected SPEEA members were told they would 'receive severance pay, which is typically about one week of pay for every year of service' and 'subsidized health care benefits for up to three months.' SPEEA reported that approximately 438 of its members were included in the first round of WARN notices (November 2024), with a second round adding approximately 660 total affected SPEEA members through early 2025. **3. Non-Union Corporate and Management Employees.** The largest share of the October 2024 reduction targeted executives, managers, and non-union corporate employees in Commercial Airplanes (BCA), Defense Space & Security (BDS), and Global Services (BGS). Boeing has not published a standard severance formula for non-union corporate employees, and no CEO memo or press release specifies weeks, multiples, or formulas for this group. Boeing confirmed in its November 2024 WARN notice to the Washington Employment Security Department that affected employees would 'continue paying benefits and health insurance for up to three months post-separation' — a healthcare continuation term consistent with the SPEEA contract — but per-employee cash severance terms for non-union workers are company-discretionary and not publicly documented. Boeing filed WARN Act notices with multiple state employment agencies covering the October 2024 reduction wave. Washington ESD WARN filings (the largest) covered 2,199 employees across Everett, Renton, and other Washington facilities, with a December 20, 2024 effective layoff date. Additional WARN filings were submitted to Missouri (692 employees in St. Louis, Ridley Park, and related facilities), South Carolina (North Charleston, 787 Dreamliner facility), Alabama (Huntsville, missile/defense operations), and Louisiana (New Orleans). California operations (Palmdale, El Segundo, San Diego) generated smaller Cal-WARN filings in early 2026.
Recent layoff context
Boeing's primary workforce reduction events since 2024: (1) October 2024 announcement — ~17,000 employees (10% global workforce), Ortberg memo October 11, 2024; first WARN notices issued November 2024, with separations beginning January 2025. (2) February-April 2025 — additional WARN filings covering Pennsylvania (101 employees, Ridley Park), Alabama (71, Huntsville), Louisiana (89, New Orleans), South Carolina (8, North Charleston), and Washington (396 additional). Boeing's primary WARN Act exposure is in Washington state (Seattle, Renton, Everett, Auburn, Kent, Tukwila, and surrounding facilities), where Washington's mini-WARN Act (effective July 27, 2025, covering private employers with 50+ in-state employees) now supplements federal WARN Act obligations. Missouri defense operations (St. Louis/Berkeley area, F-15 and F/A-18 production) are a secondary WARN Act filing site. South Carolina (North Charleston, 787 Dreamliner) and Alabama (Huntsville, defense) are also covered sites. Boeing's October 2024 layoffs specifically and deliberately excluded IAM 751 strikers from the first phase — machinists were added to reduction notices only after the November 2024 strike settlement ratification.
Fortune — Kelly Ortberg memo, Oct 11 2024 — 2024-10-11: ""While our business is facing near-term challenges, we are making important strategic decisions for our future and have a clear view on the work we must do to restore our company.""
Fortune — Boeing Washington state WARN notices, Nov 2024 — 2024-11-19: ""As previously announced, we are adjusting our workforce levels to align with our financial reality and a more focused set of priorities," a company spokesperson told AFP."
Fortune — Boeing SPEEA engineering union layoff notices, Nov 2024 — 2024-11-16: "Eligible employees will receive career transition services and subsidized health care benefits for up to three months. Workers will also receive severance, typically about one week of pay for every year of service."
WARNTracker — Boeing complete WARN notice history — 2025-04-18: "Federal and state WARN filings tracked by WARNTracker include Washington (2,192 employees, Nov 2024), Missouri (692 employees), Pennsylvania (101, Jan 2025), Alabama (71, Apr 2025), Louisiana (89, Apr 2025), and South Carolina (8, Apr 2025) in connection with the October 2024 restructuring."
CBS News — Boeing 17,000 job cuts announcement — 2024-10-11: ""Our business is in a difficult position, and it is hard to overstate the challenges we face together," said Ortberg in the memo."
What to negotiate at Boeing
- Lump sum vs. recall rights (IAM 751 members only): IAM 751's CBA provides a critical choice — accept the lump-sum layoff benefit (1 week per year, capped at 26 weeks) and forfeit seniority and recall rights, or decline the lump sum and preserve recall rights for up to four years. This is not a negotiation with Boeing — it is an election governed by the CBA. Consult your IAM 751 shop steward or district representative before making this election, as once made it is typically irrevocable.
- Healthcare continuation duration (non-union employees): Boeing's November 2024 WARN communications confirmed 'up to three months' of subsidized health care for affected employees. For non-union managers and corporate employees, this is a company-discretionary commitment — push in writing for confirmation of the exact COBRA subsidy amount, duration, and payment mechanism. Citing the six-month peer benchmarks from Google (2023) and Meta (2022) may support a request to extend beyond three months.
- Severance week count for non-union/management employees: Unlike IAM 751 and SPEEA members whose CBA specifies the formula, non-union Boeing corporate employees have no publicly documented standard formula. The number of weeks offered in your individual package may be negotiable — particularly for senior managers, long-tenured employees, or those close to a pension or retirement milestone. Boeing's Executive Layoff Benefits Plan (filed with SEC via Justia) confirms a separate executive-tier package exists; if you are a director-level or above employee, request written confirmation of which plan governs your separation.
- Pension and retirement benefit preservation: Boeing operates defined-benefit pension plans for legacy employees (frozen in 2014 for new hires) and a 401(k) plan for all current employees. If you are within a vesting cliff for pension benefits or within 18-24 months of a retirement milestone under the VIP/Voluntary Investment Plan, the separation date can represent significant financial value. Boeing's financial advisors can provide retirement impact modeling — request access through the HR transition services program.
- WARN Act pay-in-lieu compliance review: If your WARN notice was issued fewer than 60 days before your separation effective date, and you were part of a covered mass layoff, you may have a federal WARN Act claim for up to 60 days of back pay and benefits. Washington state's mini-WARN Act (effective July 27, 2025) extends similar protections to Boeing's Washington employees. Review your specific notice date against your separation date before signing any release of claims.
- Immigration transition support for H-1B holders: Boeing employs a significant number of H-1B engineers and specialists across its commercial, defense, and digital engineering divisions. Boeing's publicly described transition support (three months healthcare, career transition services) does not specifically address immigration. H-1B holders face a 60-day grace period after termination — request access to Boeing's immigration counsel immediately upon receiving a WARN notice, and confirm whether Boeing will fund a portability analysis for any pending I-140.
Calculate your situation
Inputs default to federal assumptions; adjust to your specifics.
Your situation
Severance benchmarks
Typical benchmark
$24,519
7.5 weeks · methodology: benchmarks are derived from publicly reported severance norms across us corporate layoffs. weeks/year scale with role level; tenure <1 year gets a floor; cap at 52 weeks. these are negotiation reference points, not promises.
| Band | Weeks | Gross |
|---|---|---|
| Typical | 7.5 | $24,519 |
| Good | 12.5 | $40,865 |
| Aggressive | 20.0 | $65,385 |
Tax breakdown (typical band)
| Gross | $24,519 |
| Federal supplemental | −$5,394 |
| State supplemental | −$1,618 |
| FICA — Social Security | −$1,520 |
| FICA — Medicare | −$356 |
| FICA — Additional Medicare | −$0 |
| Net cash | $15,631 |
WARN Act
Not a group layoff
OWBPA review window
Individual exit (21-day review window) under the Older Workers Benefit Protection Act, plus 7-day revocation right.
Review window: 21 days · Revocation: 7 days after signing
COBRA cost
Monthly: $0
Annual: $0
Enter your employer-side monthly premium for an estimate.
Equity at termination
Forfeited unvested: $0
ISO exercise window post-termination: 90 days
- ISO holders: you typically have 90 days post-termination to exercise vested ISOs before they convert to NSOs.
FAQ
- How much severance did Boeing pay in the 2024-2025 layoffs?
- Severance depends on union status. IAM 751 machinists: the collective bargaining agreement provides one week of pay per full year of service, capped at 26 weeks. Taking the lump sum eliminates seniority and recall rights. SPEEA engineering union members: approximately one week per year of service plus three months of subsidized healthcare, per Fortune reporting on November 2024 SPEEA layoff notices. Non-union corporate and management employees: Boeing has not publicly disclosed a standard formula for this group. The November 2024 WARN-notice communications confirmed 'up to three months' of subsidized healthcare for affected employees but did not specify cash severance amounts. Boeing's HR transition support confirmed the company retains outside career-transition vendors for non-union separating employees. For non-union employees, the package offered in your individual separation agreement is the authoritative record.
- Does my IAM 751 contract entitle me to different severance than non-union Boeing employees?
- Yes, materially. IAM 751 machinists have a contractually negotiated layoff benefit — one week of pay per full year of service, capped at 26 weeks — under the collective bargaining agreement most recently updated in the November 2024 post-strike ratification. This formula, the lump-sum vs. recall-rights election, and the recall-rights duration (up to four years) are collectively bargained terms that Boeing cannot unilaterally reduce. Non-union corporate employees, by contrast, have no publicly documented standard formula; their severance is at-will and negotiated individually through HR. The IAM 751 layoff benefit also does not count as 'severance pay' for Washington state unemployment insurance purposes, meaning IAM members may be able to claim unemployment benefits simultaneously — consult an employment attorney or IAM representative on this distinction.
- Are SPEEA engineers covered differently from IAM 751 machinists in a Boeing layoff?
- Yes. SPEEA (Society of Professional Engineering Employees in Aerospace) represents approximately 17,000 Boeing engineers and technical workers under a separate CBA from IAM 751. SPEEA's layoff terms — including the severance pay formula, healthcare continuation (three months' subsidized coverage), and career transition services — are governed by SPEEA's contract, not IAM 751's. Fortune's November 2024 reporting on SPEEA layoffs confirmed that SPEEA members received one week per year of service and three months of subsidized health care. SPEEA members also have distinct recall rights and re-employment preference provisions under their CBA. SPEEA's FAQ page (speea.org) documents member layoff rights in detail — SPEEA members should contact their union representative immediately upon receiving a WARN notice.
- Does Boeing pay severance for performance-based terminations?
- Boeing's publicly reported severance terms — including the IAM 751 CBA layoff benefit and the SPEEA CBA terms — apply to reductions in force, not to terminations for cause or poor performance. Under standard at-will employment principles governing non-union employees, and under the 'for cause' termination provisions of union CBAs, performance-based exits typically do not entitle the employee to the same severance as a layoff. Non-union Boeing employees terminated for performance reasons should review whether their separation is classified as a layoff (entitled to severance) or a for-cause termination (typically not entitled to severance). This classification governs your entitlements and may be negotiable if the facts support reclassification — consult an employment attorney before signing.
- How does Washington state WARN apply to Boeing layoffs?
- Federal WARN Act requires 60 days' advance written notice for employers with 100+ employees conducting mass layoffs of 50+ employees at a single site. Boeing's Washington facilities — Everett, Renton, Auburn, Kent, Tukwila, and others — clearly exceed both thresholds, and Boeing filed WARN notices covering 2,199 Washington employees in November 2024 (effective date December 20, 2024). Washington state enacted its own mini-WARN Act effective July 27, 2025, which applies to private employers with 50 or more in-state employees at a lower threshold than the federal standard. Boeing is fully subject to the Washington mini-WARN Act for subsequent reductions. If you received a layoff notice in Washington with fewer than 60 days before your effective separation date, consult an employment attorney about potential WARN Act claims.
- Were IAM 751 machinists included in the October 2024 Boeing layoffs?
- Initially, no. Boeing's October 2024 layoff announcement targeted executives, managers, and non-union employees in the first phase — IAM 751 machinists were explicitly excluded because the 57-day machinists strike (September–November 2024) made it legally impermissible to lay off striking workers. After the IAM 751 strike ended with contract ratification in early November 2024, Boeing began including IAM 751 members in subsequent WARN notice rounds. The November and December 2024 WARN filings covering Washington state (2,199 employees) included a mix of IAM 751 members, SPEEA engineers, and non-union employees. IAM 751 members facing layoff should contact IAM District 751 (iam751.org) immediately to understand their recall rights, the lump-sum election deadline, and unemployment insurance eligibility.
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