As competition in the world aviation industry rises, US based Boeing is to cut over 4,000 jobs at its Washington plant. Insiders suggest they plan to reduce its workforce in Washington by 10% during the next few months. Julian Bray discusses this on the City of London based Share Radio Service. Click this Link.
However the figure on earlier reports, is likely to be double that as the 4,000 announced job cuts included attrition of 2,400 jobs and voluntary buyouts of another 1,600. The company said the cuts include hundreds of managers and executives.
According to a document obtained by the Seattle Times, one of the company’s units is targeting a 10% staffing cut, and if 10% is the company’s target for its operations in Washington, that translates to as many as 8,000 jobs being lost in the state.
1,600 jobs will vanish as part of a voluntary programme Boeing announced last month, and the remaining 2,400 jobs would be shed through natural causes mainly by senior executives opting for retirement. In addition to cutting costs at the labor front, the company is said to be re-negotiating cost-cutting contracts with suppliers.
Boeing CEO Dennis Muilenburg is the brains behind the cull. Mr. Muilenburg, the ex-chief of Boeing’s defense segment, kept the segment
The company is moving development and production to the 777X family, along with the MAX version of its 737 aircraft. This switch has led to the need for cost-cuts.
|Heading for the UK, £150million US Boeing Poseidon P8|
However Boeing, has recently gained a significant order from the UK for a replacement for the RAF Nimrod reconnaissance planes .
Keeping British waters safe requires a £2billion fleet of submarine hunter aircraft, defence chiefs claim.
The RAF is calling for 12 planes and surveillance drones to monitor our coast in the wake of the renewed threat from Russia.
Britain has been without airborne maritime surveillance aircraft since Nimrod was scrapped in 2010.
Before news of the current jobs cull, the £150million US Boeing Poseidon P8 is, or perhaps was, on the RAF’s wish-list. Its radar sweeps an area the size of the UK every 10 seconds, searching for enemy ships or submarines. Equipped with a lethal array of weaponry, it can also be used for intelligence gathering and search and rescue operations.
Boeing say drop in commercial aircraft earnings is due to the higher research and development (R&D) spending required.
Boeing’s commercial aircraft division spent an eye watering $2.34 billion on R&D during the last financial year, compared to $1.88 billion he previous year.
Boeing and rival Airbus Group SE, are the two biggest players in the global aircraft manufacturing market. The Airbus order book was more buoyant than Boeings...
However Boeing is said to lead Airbus in terms of completed deliveries during the last few years,
A financial analysts report believes there's a reason that Airbus’ A321neo — the direct competitor to Boeing’s 737 — is superior.
Boeing is also losing market share as it trys to replace its mid-market aircraft, (the discontinued 757) while Airbus is filling the vortex with its A321neo.
The need to reduce costs is a constant goal real, but the Boeing strategy of cutting its skilled workforce just as they are developing three aircraft — 777X, 737MAX, and 787-10 Dreamliner — seems to defy business logic. Washington operations sustain the 747, 767, 777, and 787 Dreamliner production lines, which makes the current Washington job loss a major puzzle both inside and outside of aviation circles...
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