Actually, the layoffs have been pretty severe, though they're tempered by the union contracts and the fact that most of the affected engineers are senior ones who can just retire.
Boeing has been basically moving jobs out of Seattle to places like Oklahoma City. Those in Seattle doing the work are told they can re-apply for a job at the new location, with a significant pay cut (and moving expenses not covered). Those that don't are either involuntarily laid off or may take voluntary layoffs.
http://www.seattletimes.com/business/boeing-sees-big-savings-others-see-big-risks-in-job-transfers/
I've had a number of co-workers receive layoff notices. While many of them got the layoffs lifted, others didn't and they were laid off.
Fortunately, most of them were in their late or mid-50s, and were able to retire and start drawing their pension (Boeing has a traditional pension plan, though it's being phased out). In the event of a layoff, they also receive a lump-sum payment. The union contract specifies this is up to a half-year's salary, and in some cases, Boeing has doubled that. Boeing is also offering incentives for the more-senior engineers to accept voluntary layoffs, with, again, a significant lump sum.
The problem is the loss of expertise. During the problems with the batteries on the 787, Boeing drew experts from all over the company to solve the problem. We had three in our organization pulled into that. Two are gone, and the third's layoff date is in February.
Ron Wanttaja
