Boeing Commercial Airplanes has begun making large cuts to their workforce, as CEO Ray Conner announced a few weeks ago. According to Conner, Boeing plans on eliminating 4,000 jobs by June, which may only be half of the total cuts intended for this year. By the end of this down-scaling, the company expects to lay off around 8,000 employees, decreasing their size by 10 percent. As of now, the facility in North Charleston will be unaffected.
Boeing issued a statement on Tuesday, March 26, explaining that the initial pool of eliminated workers will consist of “hundreds of executives and managers,” according to this article in the Seattle Times. The airplane manufacturing giant informed the public that the initial 4,000-job figure will be reached through normal attrition (the retirement of employees or the elimination of their position) and voluntary buyout packages for about 1,600 employees.
The large-scale reduction of the workforce is part of a greater cost-saving plan that includes reducing supplier costs, increasing production and shrinking inventory, travel, overtime, services and contractor expenses. The plan aims to cut Boeing’s total spending by billions of dollars.
However, if enough savings cannot be found, more layoffs will have to come before the end of the year, to reach the secondary figure of 8,000.
Although many company branches across America are gearing up for the cuts, it seems that the Boeing facility in North Charleston, South Carolina will be spared. In February, Boeing South Carolina Vice President Beverly Wyse said that she anticipates steady numbers in the location’s employment for the next few years. Meanwhile, the layoffs have already begun in other states like California and Washington.