Boeing cut 4000 jobs

BoeingThe US aircraft manufacturer Boeing plans to cut about 4000 employees until mid-2016 in attempt to reduce production expenses and improve the liquidity of the balance sheet. At this point the company did not envisage compulsory employees cuts, as expects leaving of 1,600 employees from the program for voluntary layoffs, started in February 2016. Another 2,400 employees will leave the company due to retirement or attrition. This includes the culling of hundreds of managers and executives, some through involuntary layoffs.In an email to employees, Boeing said forced layoffs would be a last resort as the company restructures.

But Boeing could be forced to trim a larger portion of its workforce, up to 8,000 employees including executives and managers, in the year’s second half if it can’t rein in costs. The higher number would represent 10% of the 80,000 workers at Boeing Commercial Airplanes. The division for production of commercial aircraft, which will be affected by these cuts, carry out measures to optimize its operation to meet market requirements. In 2015, Boeing received 68% of its profit from this division of the company.

Last year, Boeing’s revenues have increased by 6% yoy to 96 billion USD, but only in the fourth quarter turnover dropped by 4% – to 23.6 billion USD. The annual net profit grew by 1% to 7.44 billion USD, but quarterly is reduced by 30% to 1.02 billion USD.

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Stefan Kachakov
My name is Stefan Kachakov and I’m working as content writer at Business News Feeds. I'm writing for business news, finance statements and business management for North, Central and South Americas and Europe.

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