Posted on 07/19/2003 6:24:10 PM PDT by Destro
Boeing to cut up to 5,000 more jobs-sources
Reuters, 07.16.03, 9:10 PM ET
By Chris Stetkiewicz
SEATTLE, July 16 (Reuters) - Boeing Co. (nyse: BA - news - people), the world's largest aircraft maker, is set to announce it will fire up to 5,000 workers from its Seattle-based commercial jet unit, sources familiar with the situation said on Wednesday.
Company spokespersons declined comment, but the sources said a formal announcement would come on Thursday.
The cuts would affect employees across the jetliner unit, including factory workers, white collar employees and support staff, sources said.
The company is nearing completion of 35,000 job cuts in the jetliner unit in the wake of the Sept. 11, 2001, hijack attacks, which slashed air travel demand and hammered airlines, which in turn have rejected or deferred hundreds of aircraft on order.
Since Sept. 2001, Boeing's total payroll has shrunk to 159,800 from 199,000, a decline of 20 percent. In the jetliner unit, the payroll has shrunk to 58,900 from 93,000, a reduction of 37 percent.
The new job cuts would reduce the current payroll by as much as 8.5 percent.
Boeing has watched its once commanding share of the commercial jet market shrink in recent years and, if company projections prove accurate, European arch rival Airbus SAS will build more jets than Boeing for the first time in 2003.
In recent months Boeing has said it might move a proposed new wide-body jet program, the 7E7, outside of Washington state in an effort to extract tax breaks from the state or others.
Washington has responded by offering more than $3 billion in tax incentives to secure the 1,000 or so jobs, plus potentially thousands more support and supplier jobs, the 7E7 would bring.
In addition, Kansas lawmakers have approved a $500 million bond offering to help Boeing finance 7E7 parts production at its Wichita plant. Boeing will be able to pay the interest with payroll taxes and has agreed to hire some 4,000 workers.
Copyright 2003, Reuters News Service
Why is it that gubmint will pay (potentially billions) to keep "1,000 or so jobs", yet let millions of jobs get lost to illegals/h1b,l1/outsourcing service jobs overseas/outsourcing manufacturing jobs overseas? Without a fight? They're either really stupid or really on the payola. Attention middle class, please grab your ankles. Gonna be a tough ride for a lot of people.
You sum it up exactly. Boeing benefits, American workers and jobs get the screw. Free Trade is anything but.
There used to be a time when flying was actually fun! free cigarettes, free meals, free drinks, free cards, curteous stewardesses, etc.
Is it really?
U.S. farmers see Brazil as lucrative investment-leaving the USA for new lands of opportunities
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