Merry Christmas: Boeing to Cut Staff in 2017
Layoffs announced, or signaled, just before the holidays are particularly cruel. Boeing Co. (NYSE: BA) somehow let slip that it would almost certainly reduce staff at its commercial airline division next year. As is often the case, people will leave “voluntarily”, or, if not enough volunteer, the cuts will be non-voluntary.
The jet airplane business continues to be tough. Boeing has to fight Airbus and several makers of smaller commercial jets. The Commercial Aircraft Corp. of China, which is owned by the government of the People’s Republic, has started to develop its own planes for the world’s largest commercial plane market. If Boeing and Airbus lose sales in the Chinese market, the profitability of the industry will suffer.
According to the Wall Street Journal:
The company expects to have cut employment at the Boeing Commercial Airplanes by 8% this year compared with 2015, but flagged what it termed as “hesitation” in buyers of its big twin-aisle jets.
Happy holidays, and a great New Year.