Share

Boeing to axe 4 500 jobs

Pittsburgh - Boeing, the world's second-largest airplane maker, plans to cut about 3% of its work force as a weakening global economy lowers demand for jetliners.

The Chicago-based company on Friday said it expects to cut about 4 500 positions from its passenger jet business, which has factories in the Seattle area. Many of the cuts will be in areas not directly associated with aircraft production.

The news comes a day after Boeing reported a 15% decline in passenger jet deliveries for 2008, when it faced an eight-week strike by union workers and shrinking airline demand. The lower deliveries ensured Boeing's archrival, Europe's Airbus, retained its rank as the world's top plane maker.

Orders for Boeing planes, meanwhile, plunged by more than half last year, following three straight years of exceptionally strong bookings, a reminder that carriers have been scaling back spending since the summer to cope with fewer air travelers.

Most of the job cuts announced on Friday are expected to occur in Washington state between April and June, the company said. Boeing says employees will receive 60-day notices starting in late February.

"This is likely just the start of it, not just at Boeing but throughout the industry," said Richard Aboulafia, an aviation industry analyst with the Virginia-based Teal Group.

Downward cycle

"We're heading into a down cycle, and how long it lasts really depends on the broader economy. But looking at the (air) traffic numbers ... it will be a bit worse than usual."

Boeing said the cuts will enable it to continue focusing on development programmes, airplane deliveries, productivity improvements and quality, as well as customer support.

"We have made significant strides in recent years to achieve greater efficiency and productivity, but we still face challenges that we must address," Scott Carson, president and chief executive of Boeing's commercial airplanes division, said in a statement.

Boeing has attributed jetliner delivery delays to the strike by unionised workers - including electricians, painters and mechanics - and other production glitches.

The work stoppage by 27 000 workers forced the company to shut its commercial aircraft plants from early September to early November.

The affected planes include the world's top-selling 737 and its next-generation 787, built for fuel efficiency with carbon composite parts.

The company said this year's job cuts will eliminate roughly the number of positions added to its commercial aircraft operation in 2008, lowering the total number to 63 500. Boeing employed a total of 162 191 people as of December 31.

In November, Boeing, also a major defense contractor, announced plans to lay off 800 of about 3 000 workers at a facility in Wichita, Kansas, due to the delay of a US Air Force tanker replacement program and the end of other work projects.

Boeing shares fell 34c to $44.45 on Friday.

- Sapa

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.08
+0.4%
Rand - Pound
23.60
+0.9%
Rand - Euro
20.32
+0.3%
Rand - Aus dollar
12.24
+0.5%
Rand - Yen
0.12
+0.4%
Platinum
942.50
-0.8%
Palladium
1,028.50
-0.1%
Gold
2,392.04
+0.5%
Silver
28.74
+1.8%
Brent Crude
87.11
-0.2%
Top 40
67,314
+0.2%
All Share
73,364
+0.1%
Resource 10
63,285
-0.0%
Industrial 25
98,701
+0.3%
Financial 15
15,499
+0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders