Boeing Co. is one of the most important multinational corporation in America that is in charge of the production and the sale of satellites, airplanes, rockets, and rotorcraft. The company is operational at a worldwide level. It earned the title of the second-largest contractor for defense purposes in the year of 2015. However, the company is now in the middle of the aftermath of impaired aircraft sales. As a consequence, the manufacturer saw no other choice than to resort to massive job cuts to balance the sensitive situation.
SPEEA Recorded 1,332 Job Cuts Within Seattle Headquarters Since 2016
On Friday, the company intends to deliver pink slips with dreadful news amid sales drop. The same date will mark the departure of 305 technical workers and engineers from the company. This batch of employees consented on their own accord to leave their jobs due to an early buyout proposal. Since the beginning of 2016, a union organization, SPEEA, recorded 1,332 layoffs. These alone took place in the manufacturing center from Seattle.
Boeing Co. is waiting for a new wave of voluntary resignations. Based on how the business environment is going to shape the remaining workforce, the company will consider whether to proceed with other job cuts or not. The vice president of engineering for the unit of the commercial airplanes, John Hamilton, informed employees on Monday on the situation. He hopes more workers are going to leave the company voluntarily. He explained this direction as a way to deal with the challenges imposed by rivals.
The Company Had to Lower Production of 777 and 747 Aircraft
With the election of Donald Trump as the President of the United States, Boeing became the symbol of the American manufacturing. The company has been dependent to layoffs from a financial point of view for a year now. During this span of time, the company eliminated almost 9% of Washington workforce to 70,640 employees. Since March 2016, Boeing operates through a total of 146,962 workers which signals a 7.6% shrinkage of its former headcount.
The reason behind all these layoffs is the same in all cases, namely weak sales. Total revenue for 2016 plummeted 1.6% to $94.6 billion. This is because the company decreased its production of 747 jumbo jetliner due to low earnings. Moreover, the company is considering a second reduction of the 777 twin-aisle plane.
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