Suppliers Could Start Feeling Affects This Year

Boeing's announcement Thursday it would slash 2010 production rates on its largest -- and most profitable -- airliners didn't come as much of a surprise for industry watchers.. and its likely ramifications won't surprise many, either.

The Seattle Times reports those cutbacks will lead to further job losses at Boeing's widebody production facility in Everett, WA by the middle of next year. Workers at facilities supplying parts for those aircraft could start laying off employees by the end of this year, as the planemaker trims its needed parts numbers to produce fewer aircraft.

In an interview with the Times, Boeing spokesman Jim Proulx said the planemaker expects the slowdown to bring "employment reductions beyond those already announced," though he didn't talk numbers.

Already in 2009, Boeing has announced plans to cut 4,500 workers from its commercial airplane division, and as many as 10,000 jobs company-wide. Those earlier cuts weren't tied to reductions in production output.

Boeing employees approximately 28,000 workers at Everett, according to the Times. Hopes that some job losses could be curbed by increased work on the upcoming 787 Dreamliner appear unlikely, as well.

An executive at one Boeing supplier for the 787 program said Boeing no longer plans an aggressive ramp-up once the composite-bodied airliner is certified, due to expected delivery deferrals and outright cancellations due to the sluggish economy.

"Rather than ramping up, the (787 suppliers) are really slowing things down," the executive said.

Boeing has received 32 order cancellations so far in 2009, all for the oft-delayed Dreamliner.

FMI: www.boeing.com