Aviation news analysis
50 SKY SHADES - World aviation news

Boeing to cut more than 4,500 jobs to reduce costs

Download: Printable PDF Date: 30 Mar 2016 10:24 category:
Publisher:
Boeing to cut more than 4,500 jobs to reduce costs - Manufacturer publisher
Krista Kuznecova
Country: United States Aircraft: Airplanes
Source: BBC

The world's largest plane manufacturer Boeing plans to cut more than 4,500 jobs by the middle of the year to reduce costs.

A company spokesman said about 1,600 positions will go through voluntary redundancies while the rest will take place through attrition.

Most redundancies are set to come from its commercial aircraft division as customers cut back on orders.

Hundreds of executives and managers are also expected to lose their jobs.

A spokesperson from Boeing said Boeing promised only to use "involuntary layoffs" as a last resort: "Staffing reductions through mid-year, including hundreds of executives and managers, are projected to total approximately 4,000 positions - none of which involve involuntary layoffs."

The cuts account for almost 3% of Boeing's workforce, which comprised 161,000 people at the end of last year.

Boeing is reacting to concern that demand for its jets is slowing.

The US company has also been losing market share to rival Airbus Group SE.

Boeing delivered a record 762 planes last year, exceeding its previous forecast. However, last year saw a big fall in new orders.

Customers in the Middle East and Asia, who had been on a spending spree, have been cutting back.

As of 31 December, Boeing's backlog of orders stood at 5,795, representing more than seven and a half years of production at the current rate.

With Boeing and Airbus factories running at full capacity, airlines have been reluctant to spend billions of dollars on aircraft that they would not receive for several years.



Loading comments for Boeing to cut more than 4,500 jobs to reduce costs...


Recommended

Buta Airways replenished its fleet with new Embraer E-190

Azerbaijan's low-cost airline Buta Airways received a new Embraer E-190, which was delivered to the airline’s fleet directly from the manufacturer in Brazil. It is the seventh in the low-...

First ANA A380 takes to the skies

The first A380 for All Nippon Airways (ANA) took to the skies today, completing a maiden flight from the Final Assembly Line (FAL) in Toulouse, France to the Airbus site in Hamburg, Germany. The aircr...

Bombardier Delivers First 90-seat Q400 Aircraft to SpiceJet

SpiceJet becomes the first airline to take advantage of the Q400 aircraft’s increased profit potential Bombardier Commercial Aircraft announced the delivery of its first 90-seat Q400 air...

At Least 5 Medium Size EU Airline Will Go Bankrupt in 2018-2019

Gediminas Ziemelis Between 2004 and 2015, the US airline industry saw 11 major air carriers merge into 4. This massive consolidation took place as a response to industry slowdowns and from the lack...