Saturday Mar 23, 201310:20 AM GMT
Boeing plans to cut up to 2,300 jobs
A Boeing 787 Dreamliner production line (file photo)
A Boeing 787 Dreamliner production line (file photo)
Sat Mar 23, 2013 8:26AM
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The Boeing Company says it will cut up to 2,300 jobs by the end of 2013 in line with plans to mainly downsize the production line of its cutting-edge 787 Dreamliner jets.


According to a statement released by the Chicago-based company on Friday, the cuts will also target the production line of Boeing’s 747 aircraft.

The 787 Dreamliners have been grounded since mid-January due to a battery problem.

A Boeing representative said that out of those job cuts, about 800 workers will be laid off in the Boeing Commercial Airplanes division, with the rest of the cutbacks coming through attrition and redeployment.

The job cuts are aimed at improving corporate governance during a development phase of new airplanes, the company stated.

Analysts say it is too early to estimate the financial effect of the job cuts particularly in light of the 787 Dreamliner grounding, with worldwide orders for the jetliner pushing the company revenue to over $80 billion.

The planned job cuts at Boeing comes as the Federal Aviation Administration (FAA) announced it was being forced to cut about 637 million dollars from its current budget and it would close air-traffic control towers at 149 airports across the United States due to Washington’s latest spending cuts.

Earlier in March, a report issued by the US Department of Labor showed that the unemployment rate was increasing in half of the US states, with employers adding the fewest jobs in seven months.

The nationwide unemployment rate increased in January to 7.9 percent from 7.8 percent in December 2012, with the rate of job increases remaining far below what economists recommend to maintain healthy employment rates.

The US economy shrank by 0.1 percent in the fourth quarter of 2012, casting doubt on the strength of economic recovery in the country.

GMA/HSN
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