Boeing confirms massive job cuts
Up to 30,000 in aircraft division may lose jobs
An American flag flies at half-staff Monday outside a Boeing test center building in Seattle.
MSNBC NEWS SERVICES
Sept. 18 — Boeing will lay off 20 to 30 percent of its commercial airline work force — between 20,000 and 30,000 people — as a result of the terrorist attacks. The company confirmed its plans after reports Tuesday and was expected to make a formal announcement Tuesday night.
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THE COMPANY DID NOT mention specific locations for the layoffs, but was telling lawmakers they are expected to be implemented by early 2002.
Alan Mulally, Boeing Commercial Airplanes chief, scheduled a Tuesday night news conference in Seattle.
“We profoundly regret that these actions will impact the lives of so many of our highly valued employees,” Mulally said in a statement. “However, it is critical that we take these necessary steps now to size the Commercial Airplanes business to support the difficult and uncertain environment faced by our airline customers.”
U.S. Rep. Jim McDermott, who represents Washington state, where Boeing employs 80,000 of its 199,000 workers, had earlier told Reuters that Boeing initially planned to make the announcement on Wednesday.
And Dana Middleton, Washington Gov. Gary Locke’s press secretary, confirmed that the governor was contacted by top Boeing officials Tuesday with the news. Locke planned to meet with aerospace union leaders Wednesday to offer any assistance the state can provide laid-off workers. Middleton said Boeing officials told the governor early Tuesday the layoffs in Washington state could begin quickly.
Roughly 93,000 people work for Boeing’s commercial airline sector, much of which is centered around the company’s former headquarters in Seattle.
The White House and Congress are considering a federal aid package for the airline industry to help it recover from last week’s attacks.
The industry has asked for $24 billion. The House floated a $15 billion relief plan last Friday that could include $2.5 billion in immediate grants and $12.5 billion in loans and credits.
Though the White House and congressional leaders suggested a multibillion-dollar package was on the way, they weren’t offering a final dollar figure or timetable for debate.
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The Bush administration could propose an aid package next week, Transportation Secretary Norman Mineta said. The House may move forward this week, when it returns from a recess for the Jewish holiday.
Boeing’s stock has plunged since markets reopened this week. On Monday, the first regular day of trading the price fell $7.60. The price was down $2.66, to $33.14, when trading closed Tuesday.
Major carriers have promised layoffs of at least 26,000 people — a number that could grow to 100,000. Many, including American, Continental, Delta, Northwest and United, have also scaled back their schedules by about 20 percent.
With such declines, analysts have said layoffs at Boeing may be an inevitable side effect as orders for commercial aircraft are certainly expected to drop. |
