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Wall Street's XMAS Present--Gigantic Layoffs
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Boeing To Cut Up to 48,000 Jobs
(December 1, 9:24 pm)
SEATTLE (AP) - Boeing Co. will cut an additional 20,000 workers over
the next two years as the company further scales back production of
several commercial jet lines due largely to slackening demand because
of the Asian economic crisis.
The new cuts will bring the total reductions in Boeing's work force to
48,000 jobs, or a 20 percent drop from the high level of 238,000
reached in June of this year. In July, the company announced that it
would trim 28,000 jobs.
"Clearly, the economic slowdown in Asia is driving air traffic down
which impacts our customers' plans and operations," Alan Mulally,
Boeing Commercial Airplane Group president said Tuesday. "Our actions
today will match production to market demand to support our
customers."
Boeing, which earlier had projected 1999 net earnings at about $2
billion, now is forecasting next year's profits at $1.5 billion to
$1.8 billion. It said 1998 profits were expected to be slightly above
$1 billion, as earlier forecast.
The size of the new job reductions came as a shock to Boeing workers.
Bill Johnson, president of Boeing's largest union, said he was given
no advance warning of the job cuts, which he called
"sensationalistic."
Boeing is "playing with the lives of working-class families throughout
the area," said Johnson, head of the Machinist union District Lodge
751, which represents about 40,000 workers in the Seattle area.
"It came as a surprise although I knew more layoffs were coming. But I
expected less layoffs," said Daniel Smith, a fuel line plumber on 777
jetliners at Boeing's Everett assembly plant.
"It's affected everyone pretty badly. Everybody's scared they're going
to get laid off. Everybody's worried. People aren't spending money.
Personally, I'm worried I won't be able to pay for my house. I'm
worried I may get a layoff notice myself."
"We weren't anticipating any layoffs," said Bill Brock, a business
representative for Local 837 of the Machinists union in St. Louis,
where Boeing assembles fighter planes.
Boeing has not said where the layoffs will take place.
Boeing presently is rolling out 51 planes a month, said spokesman
Larry McCracken. He said that will drop to 47 at the end of next year
and 38.5 planes a month by the end of 2000.
The company said it would reduce production of 747 jetliners from 3.5
to two airplanes per month late next year, and to just one per month
in early 2000 if market conditions fail to improve. It now produces
five 747 jumbo jets a month, and had earlier said it would reduce the
rate to 3.5 by the middle of next year.
Production of 757 jetliners will drop from five to four airplanes per
month and the 767 program will drop from four to 3.5 airplanes per
month in early 2000.
The 777 program, currently scheduled to be reduced from seven to five
planes per month in fourth quarter of 1999, is now projected to remain
at the lower rate in 2000. Boeing had hoped to return the production
rate to seven a month in 2000.
Boeing will increase production on its new-generation 737s as
scheduled to 24 planes per month, and it will remain at that rate
until late 2000 when it will decrease to 21 a month.
Air traffic growth in many Asian markets has plummeted as the
countries grapple with their worst currency crisis in decades. Many
Asian airlines have reported operating losses or reduced profits since
the crisis began, Boeing officials say.
Glenn Stewart, an aerospace analyst with A.G. Edwards, called Boeing's
Tuesday announcement "disappointing."
Given Asian financial instability and acknowledged production
inefficiencies, Boeing "could have been a little bit more
conservative" in its original financial projections, he said.
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Boeing To Cut Up to 48,000 Jobs
(December 1, 9:24 pm) SEATTLE (AP) - Boeing Co. will cut an additional 20,000 workers over the next two years as the company further scales back production of several commercial jet lines due largely to slackening demand because of the Asian economic crisis. The new cuts will bring the total reductions in Boeing's work force to 48,000 jobs, or a 20 percent drop from the high level of 238,000 reached in June of this year. In July, the company announced that it would trim 28,000 jobs. "Clearly, the economic slowdown in Asia is driving air traffic down which impacts our customers' plans and operations," Alan Mulally, Boeing Commercial Airplane Group president said Tuesday. "Our actions today will match production to market demand to support our customers." Boeing, which earlier had projected 1999 net earnings at about $2 billion, now is forecasting next year's profits at $1.5 billion to $1.8 billion. It said 1998 profits were expected to be slightly above $1 billion, as earlier forecast. The size of the new job reductions came as a shock to Boeing workers. Bill Johnson, president of Boeing's largest union, said he was given no advance warning of the job cuts, which he called "sensationalistic." Boeing is "playing with the lives of working-class families throughout the area," said Johnson, head of the Machinist union District Lodge 751, which represents about 40,000 workers in the Seattle area. "It came as a surprise although I knew more layoffs were coming. But I expected less layoffs," said Daniel Smith, a fuel line plumber on 777 jetliners at Boeing's Everett assembly plant. "It's affected everyone pretty badly. Everybody's scared they're going to get laid off. Everybody's worried. People aren't spending money. Personally, I'm worried I won't be able to pay for my house. I'm worried I may get a layoff notice myself." "We weren't anticipating any layoffs," said Bill Brock, a business representative for Local 837 of the Machinists union in St. Louis, where Boeing assembles fighter planes. Boeing has not said where the layoffs will take place. Boeing presently is rolling out 51 planes a month, said spokesman Larry McCracken. He said that will drop to 47 at the end of next year and 38.5 planes a month by the end of 2000. The company said it would reduce production of 747 jetliners from 3.5 to two airplanes per month late next year, and to just one per month in early 2000 if market conditions fail to improve. It now produces five 747 jumbo jets a month, and had earlier said it would reduce the rate to 3.5 by the middle of next year. Production of 757 jetliners will drop from five to four airplanes per month and the 767 program will drop from four to 3.5 airplanes per month in early 2000. The 777 program, currently scheduled to be reduced from seven to five planes per month in fourth quarter of 1999, is now projected to remain at the lower rate in 2000. Boeing had hoped to return the production rate to seven a month in 2000. Boeing will increase production on its new-generation 737s as scheduled to 24 planes per month, and it will remain at that rate until late 2000 when it will decrease to 21 a month. Air traffic growth in many Asian markets has plummeted as the countries grapple with their worst currency crisis in decades. Many Asian airlines have reported operating losses or reduced profits since the crisis began, Boeing officials say. Glenn Stewart, an aerospace analyst with A.G. Edwards, called Boeing's Tuesday announcement "disappointing." Given Asian financial instability and acknowledged production inefficiencies, Boeing "could have been a little bit more conservative" in its original financial projections, he said. =================================================================== uwsa@uwsa.com is an unmoderated mail list to discuss general government topics. To join or leave this list send mail to majordomo@uwsa.com TO: majordomo@uwsa.com Subject: ---------------------------------------- (un)subscribe uwsa Visit our world wide web site at http://www.uwsa.com Support UWSA.COM at http://www.uwsa.com/UWSAintro.htmlVOXPOP INDEX, - Click Here.
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