March 31, 2016
Chicago-based Boeing Co. could “hypothetically” shed upwards of 8,000 jobs this year, as part of a 10 percent employment reduction goal at the commercial airplanes unit. The move aims to reduce costs by about $1 billion, as the company seeks to compete with European rival Airbus.
This week, Boeing confirmed that roughly 4,500 job cuts were expected by mid-year. Planned workforce cuts will start at the executive and manager level. Reductions will also come through attrition and voluntary layoffs.
Boeing’s total employment in the state of Washington is around 79,000. Operations in Everett, WA could be impacted most, since that’s where the wide-body 747s and 777s are assembled.
Ironically, Boeing is experiencing a significant peacetime boom, and has increased jetliner output to record levels. These productivity gains, however, are being achieved with fewer workers.