US aerospace giant Boeing said on Friday it would cut about 4,500 jobs beginning next month amid a weakening global economy.
“We are taking prudent actions to make sure Boeing remains well-positioned in today’s difficult economic environment,” said Scott Carson, chief executive of Boeing’s Seattle-based Commercial Airplanes business unit.
Employment at Commercial Airplanes was “expected to decline by approximately 4,500 positions in 2009 as part of an effort to ensure competitiveness and control costs in the face of a weakening global economy,” the company said in a statement.
The job cuts will bring the unit’s workforce to about 63,500, similar to the level it was at the start of last year, the company said.
“We regret the disruption to those affected by this decision,” Carson said, adding that the move would enable it to adapt to market uncertainties, meet customer commitments, continue investments and protect competitiveness.
Boeing also said the Commercial Airplanes unit had begun a program to reduce overhead costs and discretionary spending.
“Although normal attrition and a reduction in contract labor will account for some of the job reductions, layoffs of Boeing employees also are necessary,” the statement said.
Many of the job cuts will be in overhead functions and other areas not directly associated with airplane production.
Most of the reductions are expected to occur in Washington state in the second quarter of the year, with affected employees to receive 60-day notices beginning late next month, Boeing said. Laid-off employees would receive benefits and “career-transition” services, Boeing said.
“This is likely just the start of it, not just at Boeing but throughout the industry,” said Richard Aboulafia, an aviation industry analyst with the Virginia-based Teal Group.
“We’re heading into a down cycle, and how long it lasts really depends on the broader economy. But looking at the [air] traffic numbers ... it will be a bit worse than usual,” Aboulafia said.
The news of job cuts comes a day after Boeing reported a 15 percent decline in passenger jet deliveries for last year, when it faced an eight-week strike by union workers and shrinking airline demand.
The lower deliveries ensured Boeing’s archrival, Europe’s Airbus, retained its rank as the world’s top plane maker.
Orders for Boeing planes, meanwhile, plunged by more than half last year, following three straight years of exceptionally strong bookings, a reminder that carriers have been scaling back spending since the summer to cope with fewer air travelers.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
BULLY TACTICS: Beijing has continued its incursions into Taiwan’s airspace even as Xi Jinping talked about Taiwan being part of the Chinese family and nation China should stop its coercion of Taiwan and respect mainstream public opinion in Taiwan about sovereignty if its expression of goodwill is genuine, the Ministry of Foreign Affairs (MOFA) said yesterday. Ministry spokesman Jeff Liu (劉永健) made the comment in response to media queries about a meeting between former president Ma Ying-jeou (馬英九) and Chinese President Xi Jinping (習近平) the previous day. Ma voiced support for the so-called “1992 consensus,” while Xi said that although the two sides of the Taiwan Strait have “different systems,” this does not change the fact that they are “part of the same country,” and that “external
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source