Commercial Airplane Division To Be Hardest Hit

Boeing has announced plans to reduce its workforce, primarily in the Commercial Airplane division, beginning with management.

The Seattle Times reports that Boeing Spokesman Doug Alder said that executives and managers will be the first to be let go, but the employment reductions will be across all segments. Alder said that company will initially use attrition and voluntary separations before resorting to involuntary layoffs.

“The overall employment impact will depend on how effectively we bring down costs as a whole,” Alder said.

Boeing Commercial Airplanes CEO Ray Conner announced the cost-cutting move in a webcast to all employees Wednesday morning.

The International Association of Machinists (IAM) has not been given any specific information on the layoffs, according to the report.

The company "must reduce the cost of designing and building our airplanes" to "win the market, fund our growth and operate as a healthy business," Alder said.

(Image from file)

FMI: www.boeing.com