Boeing is cutting about 4,000 jobs and could double that number by the end of the year, as it faces strong competition with Airbus.
Image copyright: Jason Redmond/AFP/Getty
The Chicago-based company has announced it will cut around 4,000 jobs in the commercial division, around a third of which will be achieved with voluntary layoffs. This job cut will remove hundreds of executives and managers, while employees will be forced to lease only as a last resort.
Boeing will also cut around 10% of the 5,700 jobs in its test and evaluation division. The company at the end of December had 161,400 employees, with the commercial division making up half of them.
In February the head of Boeing’s business, Ray Conner, warned employees that the cuts were necessary to “win in the market, fund our growth and operate as a healthy business”.
The American company has been overtaken as the number one for future orders by Airbus, which claims it has 57% of the market by units ordered, with the A320neo that has given them the dominant position in the short-haul market, while Boeing was selling more wide-bodies.
Boeing delivered 762 planes in 2015, for a revenue of $125 billion, compared to Airbus that delivered 635 planes, for a revenue of $91.6 billion.
“While there is no employment reduction target, the more we can control costs as a whole the less impact there will be to employment”, the company said.