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Boeing Announces Big Layoffs in Defense Division

Home - by - November 8, 2012 - 23:00 America/New_York - 14 Comments

CNBC

Boeing announced a major restructuring of its defense division on Wednesday that will cut 30 percent of management jobs from 2010 levels, close facilities in California and consolidate several business units to cut costs.

Boeing Headquarters

The company [BA  70.98   0.87  (+1.24%)   ] told employees about the changes on Wednesday, in a memo obtained by Reuters and confirmed by Boeing.

Boeing, the Pentagon’s second-largest supplier, said the changes were the latest step in an affordability drive that has already reduced the company’s costs by $2.2 billion since 2010, according to the memo.

The measures come as U.S. weapons makers are under pressure to cut costs and preserve profit margins amid dwindling defense spending in the U.S.

In a message to employees, Dennis Muilenburg, chief executive of Boeing Defense, Space & Security, said the company aimed to cut costs by an additional $1.6 billion from 2013 through 2015.

“We are raising the bar higher because our market challenges and opportunities require it, and our customers’ needs demand it,” Muilenburg said.

 

He said the total savings would reach $4 billion, making the company healthier and better able to deal with a tougher marketplace.

He said Boeing would cut the number of executive jobs an additional 10 percent by the end of 2012, bringing overall cuts in its executive team to 30 percent for the past two years, a move that would result in a 10 percent cut in management costs.

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» 14 Comments

  1. Mr. Happy

    November 8th, 2012

    The sad part is that most of those Boeing employees were probably Republicans and come 2014 they will be nearing the end of their 99-weeks of unemployment and will likely be swayed by some Dem promising them more of your tax money, rather than a Republican promising them a shot at another job via a stronger economy.
    Neat system, eh?

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  2. Bad Brad

    November 8th, 2012

    They were not Republicans. Most of them probably belonged to the Aerospace Machinist Union or what ever, I know that wrong, and voted for the second coming.

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  3. Bad Brad

    November 8th, 2012

    But then again I can’t wait for Falling Down part 2.

    http://www.youtube.com/watch?v=-eREiQhBDIk
    /

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  4. FreeMan & Sarah Voting Early & Often

    November 8th, 2012

    If the Prezzy is downsizing the military than looks like Boing boing will be out of a job.

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  5. Moe tom

    November 8th, 2012

    But weren’t they to hold off, laying off, untill after the election? heeeeee.haaaaaa.,.hoooooo We’re fucked. 60 days notice heeee heee. You know in real life you would never give a bar tender, for example, notice of a lay off. He would rob you blind. You walk into the bar and tell the thief, you’re fired. Get out. I could tell you stories but I’m too tired. Some law says you got to give employees 60 days notice. The Obama regeime cajoled the employers not to do it until after the election. The employers (scumbags) complied. So now we have a deluge of layoffs, but it’s after the election. My point is:
    When the Clintons knew they had to leave the White House, they robbed the place blind. 60 days notice? Gettofuckouttahere!. I want to lay a guy off, which I did in the old days, I’d have his check and say Sorry Joe, we are winding down, but call the office in a day or two. But Joe was a tradesman and will be taken back as soon as we get work.
    Did I make any sense?

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  6. Chalupa

    November 8th, 2012

    Barry’s road of recovery is very bumpy.

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  7. Doc

    November 8th, 2012

    Recovery my ass…he want us as a third world shithole!

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  8. Commissar M

    November 9th, 2012

    I will note too that Boeing moved their corporate HQ from Seattle to Chicago a few years back, so I imagine some of those lay offs will impact 0bama’s home turf. Darn….

    On the down side, BAE is a pretty big employer in my part of the country and I suspect we’ll take a hit pretty soon, too. The BIG prize is Ingalls Shipyard with all those union jobs. Wonder how long before the down-sizing hits them?

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  9. ? everything

    November 9th, 2012

    management is typically non union, 30% of middle mgmt is being laid off, regardless it has started.

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  10. Plain P-O'd Jane

    November 9th, 2012

    Bad,

    “They were not Republicans. Most of them probably belonged to the Aerospace Machinist Union or what ever, I know that wrong, and voted for the second coming.”

    Not. It’s management.

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  11. Bad Brad

    November 9th, 2012

    Plain P-O’d Jane, I know better then to doubt you. But that makes no sense. Unless the gutted the old Rocketdyne. Where are you getting the 411 I’d like more info. Thanks.

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  12. Bad Brad

    November 9th, 2012

    Jane, If this article is what you are judging where the cuts are coming from, it not very definitive. And it does mention “Workers”. I don’t know. Anyway you look at it, Barry’s having a stellar effect on free enterprise.

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  13. RosalindJ

    November 9th, 2012

    I’ll call you and raise you. Last 48 hours:

    Abbott Labs
    Atlantic Lottery Corporation
    Boeing
    Bristol-Myers
    Boston Scientific
    Caterpillar
    Center for Hospice NY
    CVPH Medical Center
    Commerzbank
    Corning
    CVPH Medical Center
    Dana Holding
    Energizer,.
    Ericsson,
    Gameforge Berlin
    Groupon
    Harley-Davidson
    Hawker Beechcraft
    Husqvarna
    Iberia,
    ING
    Kmart
    Lightyear Network Solutions
    Lower Bucks Hospital
    Majestic Star Casino and Hotel
    Medtronic
    Momentive Performance Materials
    Oce North America
    Pepsi
    PerkinElmer
    Providence Journal
    Research in Motion
    Smith & Nephew
    SRA International
    St. Jude
    Stryker
    Target
    United Blood Services Gulf
    US Cellular
    Vestas Wind Systems
    Welch Allyn
    Westinghouse

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  14. Bob M.

    November 9th, 2012

    Yee ha.

    MORE jobs the DEMOCRAPS can outsource to China… :roll:

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