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Boeing Announces Big Layoffs in Defense Division
cnbc ^ | Wednesday, 7 Nov 2012 | 2:59 PM ET

Posted on 11/08/2012 9:30:28 AM PST by Red Steel

Boeing announced a major restructuring of its defense division on Wednesday that will cut 30 percent of management jobs from 2010 levels, close facilities in California and consolidate several business units to cut costs.

The company told employees about the changes on Wednesday, in a memo obtained by Reuters and confirmed by Boeing.

Boeing, the Pentagon's second-largest supplier, said the changes were the latest step in an affordability drive that has already reduced the company's costs by $2.2 billion since 2010, according to the memo.

The measures come as U.S. weapons makers are under pressure to cut costs and preserve profit margins amid dwindling defense spending in the U.S.

In a message to employees, Dennis Muilenburg, chief executive of Boeing Defense, Space & Security, said the company aimed to cut costs by an additional $1.6 billion from 2013 through 2015.

"We are raising the bar higher because our market challenges and opportunities require it, and our customers' needs demand it," Muilenburg said.

He said the total savings would reach $4 billion, making the company healthier and better able to deal with a tougher marketplace.

He said Boeing would cut the number of executive jobs an additional 10 percent by the end of 2012, bringing overall cuts in its executive team to 30 percent for the past two years, a move that would result in a 10 percent cut in management costs.

Boeing said the changes were not a response to the threat of additional, across-the-board U.S. budget cuts due to take effect on Jan. 2, or the outcome of U.S. elections, but represented another step in its continuing drive to "be more competitive while investing in technologies and people."

Boeing said it could not project exactly how workers would lose their jobs because it would try to place people in its growing commercial business.


TOPICS: Business/Economy; Extended News
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To: Red Steel

...unexpectedly...


21 posted on 11/08/2012 9:53:57 AM PST by null and void (Day 1388 of the Obama hostage crisis - Barack Hussein Obama an enemy BOTH foreign AND domestic)
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To: sauropod
In the case of Lockheed Martin, it was known for a couple of months and notices withheld.

In the case of Lockheed Martin, they got two fat contracts the day they announced they were knuckling under.

22 posted on 11/08/2012 9:57:45 AM PST by null and void (Day 1388 of the Obama hostage crisis - Barack Hussein Obama an enemy BOTH foreign AND domestic)
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To: Red Steel; originalbuckeye; zot; DonkeyBonker; madison10; DesertRhino; Gator113

sorry for the triple post.


23 posted on 11/08/2012 10:00:07 AM PST by GreyFriar (Spearhead - 3rd Armored Division 75-78 & 83-87)
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To: stuartcr

Yes. BUT the Obama Administration published ‘guidelines’ that Boeing and other defense contractors not make the announcement(s) until after the election.


24 posted on 11/08/2012 10:02:13 AM PST by EDINVA
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To: GreyFriar
Notice that Boeing is cutting back in California. The Dem voters of Calfornia passed Proposition 30 which increases taxes on people and corporations. Passing Prop 30 just gives Boeing the incentive to join all the other people and companies who have left taxifornia.

law of unintended consequences

25 posted on 11/08/2012 10:02:14 AM PST by Godzilla (3/7/77)
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To: Red Steel

Obama said he created five million jobs,to bad he didn’t finish the line (in China).


26 posted on 11/08/2012 10:06:39 AM PST by Vaduz
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To: EDINVA

You don’t think any other incumbent would do the same?


27 posted on 11/08/2012 10:13:25 AM PST by stuartcr ("When silence speaks, it speaks only to those that have already decided what they want to hear.")
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To: GreyFriar

Yes, the voters of Taxifornia are about to get what they voted for.


28 posted on 11/08/2012 10:14:30 AM PST by zot
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To: Vaduz

I just cannot figure out why he didn’t also tell the masses how many jobs were lost during his tenure! / s


29 posted on 11/08/2012 10:40:32 AM PST by originalbuckeye
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To: Red Steel

The Boeing Commerial Aircraft Services is next. Huge layoffs expected as they just reorganized two weeks ago.


30 posted on 11/08/2012 11:04:41 AM PST by CodeToad (Padme: "So this is how liberty dies... with thunderous applause.")
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To: stuartcr

I answered your question, now you present quite another. It’s all in the news. You can google what was done, and when. I’m not into speculating.


31 posted on 11/08/2012 11:06:24 AM PST by EDINVA
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To: stuartcr

Again - You should win an award for always having the most leftist view on every thread you pollute!


32 posted on 11/08/2012 11:09:21 AM PST by ohioman
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To: stuartcr

Again - You should win an award for always having the most leftist view on every thread you pollute!


33 posted on 11/08/2012 11:09:58 AM PST by ohioman
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To: Red Steel

Too bad they can’t just lay off the Obama voters.


34 posted on 11/08/2012 11:10:44 AM PST by Fido969
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To: stuartcr

No, actually, I don’t .. and I’ve a sneaking suspicion that you know it too.


35 posted on 11/08/2012 11:15:40 AM PST by tomkat ( <shrug>)
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To: EDINVA

ok


36 posted on 11/08/2012 11:27:55 AM PST by stuartcr ("When silence speaks, it speaks only to those that have already decided what they want to hear.")
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To: ohioman

What good is a forum where everyone says the same thing?


37 posted on 11/08/2012 11:28:58 AM PST by stuartcr ("When silence speaks, it speaks only to those that have already decided what they want to hear.")
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To: tomkat

I do.


38 posted on 11/08/2012 11:30:12 AM PST by stuartcr ("When silence speaks, it speaks only to those that have already decided what they want to hear.")
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To: Red Steel

They can just make solar panels, windmills, and grow algae.


39 posted on 11/08/2012 11:49:08 AM PST by faucetman ( Just the facts, ma'am, Just the facts)
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To: Red Steel

Odinga told Boeing to wait with this news until after the election. Obama is a discrace and extreme danger! I can’t stand the little SOB!


40 posted on 11/08/2012 11:53:39 AM PST by AngelesCrestHighway
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