Boeing: Three More Waves of Layoffs in 2017, as Orders Collapse to 7-Year Low. Shares Near All-Time High

Wednesday, January 11, 2017
By Paul Martin

by Wolf Richter
WolfStreet.com
Jan 10, 2017

That Great Global Economy.

This is not the way to start your workday… to find this email from your boss in your inbox:

“As we enter 2017, our plan calls for us to reduce our Engineering staff. I realize some of this news is unpleasant. But I wanted to respect your right to know what is occurring this year.”

But that’s what happened on Tuesday at Boeing.

Hammered by slowing aircraft sales and a declining order book, Boeing warned on Tuesday in an internal memo that it would conduct involuntary and voluntary layoffs of engineers in Washington state, southern California, and South Carolina, according to The Seattle Times. The memo did not mention the size of the staff cuts.

The memo by John Hamilton, VP of engineering at Boeing Commercial Airplanes, summed the situation up this way:

“We continue to operate in an environment characterized by fewer sales opportunities and tough competition.”

These staff cuts come on top of the cuts in 2016, when Boeing slashed its workforce in Washington state down by 9.3%. That’s 7,357 jobs.

Business has been tough. In 2016, deliveries fell by 14 jets from a year ago, to 748. Net orders dropped 13% from an already rotten level in 2015, to just 668, down 53% from 2014. And the lowest level since 2010!

The Rest…HERE

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