Boeing airplane unit to sack more people in 2017
Boeing�s commercial airplane unit on Monday said that it would reduce it workforce in 2017 citing fierce competition with rival Airbus and a drop in new orders.
Boeing’s commercial airplane unit on Monday said that it would reduce it workforce in 2017 citing fierce competition with rival Airbus and a drop in new orders.
The company, which had slashed its workforce in 2016 by 8%, has not yet announced the number of job it will cut next year. The Chicago-based company has been battling with European rival Airbus.
The company is offering a voluntary layoff program in early 2017, adding that involuntary layoffs may occur in some cases. "While we have made progress in reducing costs and improving affordability, we will need to do more in 2017," said an internal company message. "We will need to continue to reduce the size of our workforce next year."
Boeing said last week that it would cut production of its twin-aisle 777 jetliner to five a month in August 2017, a 40% reduction from the current rate of 8.3% a month, as it spends more to produce new models.
Reuters reported in February that Boeing was considering layoffs of airplane engineers. "To successfully compete and win new orders that will fund future product development and growth requires us to achieve much better performance," the company executives said.
US President-elect Donald Trump had targeted Boeing saying the United States should cancel a pending order to buy modified Boeing 747s as new presidential aircraft, Air Force One, because the cost was too high.
A Boeing spokesman said plane sales are getting more competitive, requiring additional cost-cutting beyond what was envisioned in 2016. "We've got to perform better," he said. "It's an ongoing process."
As of December 15, Boeing has 468 total orders for the year, compared to 768 total orders in 2015 and 1,432 in 2014. Boeing has a backlog of more than 5,600 airliners -- mostly single-aisle 737s -- to build over the coming years.