Boeing Unit to Cut Up to 1,500 Jobs

The Associated Press ^ | OCTOBER 30, 2002

[Willie Green]

For education and discussion only. Not for commercial use.

BELLEVUE, Wash. (AP) — Boeing Co.'s Shared Services division, which handles computing, telecommunications, building maintenance and other in-house jobs for the aerospace company, plans to cut 1,200 to 1,500 jobs in the next six months.

The cuts, which will come through layoffs, attrition and eliminating contract workers, amount to nearly 9 percent of the Bellevue-based division's work force, spokeswoman Barbara Murphy said Wednesday. Most of the unit's employees work in the Puget Sound region.

The reductions come on top of the 30,000 jobs that Boeing plans to eliminate by the end of 2002 due to slashed commercial jet production and the weak airline market since the Sept. 11 terrorist attacks. Boeing chairman Phil Condit said earlier this month that Boeing will continue to reduce its work force over the next 18 months, but the company has not released a target figure.

The Shared Services division has already lost 2,741 positions through attrition, layoffs and other reductions since the terrorist attacks, although Boeing Commercial Airplanes, the Puget Sound area-based division that builds jetliners, bore the brunt of the company's reductions in the past year.

Murphy said Shared Services is currently identifying how and where to make the cuts. It is also trying to reduce the number and levels of managers, to an eventual ratio of one manager per 20 workers from the current ratio of 1-to-12.

Shares of Boeing rose 50 cents to close at $30.20 Wednesday on the New York Stock Exchange.

[lelio]

Another month, another Boeing layoff. I can set my clock to it.
In 2 years Boeing will be scrambling to hire workers. I can also set my clock to that to.

[Bush2000]

Look on the bright side: At least traffic will be a little lighter.

[RLK]

It seems like I remember entering into a discussion about that here recently. More Mulally...

[Consort]

No problem.

[lelio]

Traffic will only get better if you vote for R51.

[RLK]

Another month, another Boeing layoff. I can set my clock to it. In 2 years Boeing will be scrambling to hire workers. I can also set my clock to that to.

------------------------

The president of Boeing is moving much of Boeing's manufacture of aircraft out of the country to, as he put it, ...share the wealth of Boeing with other nations. You can throw away your clock.

[Bush2000]

Dude, you've swallowed Gary Locke's mantra hook, line, and sinker. The fact of the matter is that R51 will put the money in the general fund and not commit all of it for a decade to fixing the worst problems. Meanwhile, the politicians will see all that free money and divert it for other purposes; then, after it's gone, they'll talk about the need to boost gas taxes again or call for an income tax. Vote No on R51. It's a boondoggle.

[lelio]

My clock's made in Mexico but I sure hope the next plane I'm on isn't. It would take them years to setup shop somewhere else, get the locals trained, etc. Not to mention that who wants to be the first to ride on a plane made in a new location?
Not that I put moving offshore past them. I give it 20 years.

[cmsgop]

Very well said Bush2000!!!

NO ON 51 !!!

[lelio]

That was supposed to be a /sarcasm on there ;) My favorite part of the pro-R51 ads is that it has "accountability" What do we have now? How come the state auditor wasn't consulted on this referredum? What punishments / rewards are there? None!
You forgot to mention that Slade Gorton is a sponsor of this too. He says that he doesn't have anything to gain from it financially. Well maybe he doesn't personally, but his employer, Preston Gates, sure does by underwritting the bonds for all this half-funded construction.

[cmsgop]

I give it 20 years

I would not put any money on that bet if I were you. Alot of these jobs will never be coming back to the Puget Sound Region, EVER, Poof, Gone ,Adios.......

[RLK]

Not that I put moving offshore past them. I give it 20 years.

-----------

More like four to five. A lot of the work will be moved to China.

[lelio]

Come to think of it, China is a big market. And the Chinese government will probably only want Chinese made planes. Ergo, a new Boeing factory over there.

[Bush2000]

My two cents. Boeing is seriously screwed. They don't get subsidies from foreign governments like Airbus so, consequently, they actually have to earn a profit. The writing is on the wall: Boeing is going to send its production offshore to China, Mexico, and elsewhere. People here scoff at that -- claiming that there's no trained labor there -- but the Chinese will give Boeing seriously cheap labor in exchange for putting production there. It's going to happen. It's the only way that Boeing can tap into the Chinese market.

[Blue Screen of Death]

A lot of the work will be moved to China.

Well, at least they will not have to deal with as much liberalism in Communist China.

[Bush2000]

Well, at least they will not have to deal with as much liberalism in Communist China.

Democrats would feel right at home in China.

[lelio]

I echo your comments on Airbus. How can you compete with a company "owned" by the state that can spend whatever it takes and sell jets for nothing?
I couldn't believe my ears when I heard that Airbus wanted to be considered for Pentagon contracts. Let's just start putting (Chinese made) nails in our own free market system's coffin.
I also think the whole airline companies' (well companY now with just Boeing) is going to run into some serious over capacity issues. How many new jetliners do people need? With the commoditization of the industry people don't care what airline they travel and will change their times to get a better rate the airlines won't have to offer as much service.
To wrap things up: I think the WA state government should come to the realization that Boeing's going to be out of here and to concentrate on bringing in biotech / high tech firms. Sucks if you're just a machinist, but hey.

[fogarty]

Here in Texas, EDS just said they are laying off another 1,500 this quarter and shipping the jobs overseas to India. Apparently Alcatel is laying off another 5000 or so (they don't have too many left in North America), and TI also announced more cutbacks before Christmas.

All in all, it hasn't been this bleak since about 1930.

[Eala]

Traffic will only get better if you vote for R51.

And the dozens of tax hikes that will follow. R-51 is only the down payment; the campaign's own website admits that most of the money only goes into environmental impact reports (who pockets the money from these?) and other aspects of planning.

R-51 is a lure, a worm wriggling on a barbed hook. Bite it and you'll be sorry.