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Friday, January 09, 2009

Boeing to Cut 4,500 Jobs in Aircraft Division

By Ken Sweet

FOXBusiness

Aviation company and Dow component Boeing (BA) said Friday it would cut about 6.5% of its aircraft division's work force in the first half of 2009 as a response to a "weakening global economy."

This comes after the aircraft maker dealt with a multiweek machinists' strike in mid-2008. Boeing shares, which are down 45% from a year ago, were largely unchanged on the announcement.

Boeing said the cuts, which equate to approximately 4,500 jobs, would come in administrative areas and would not be directly related to airplane reduction. The bulk of the cuts would happen in Washington State, where the aviation company is headquartered.

"We believe acting now will allow us to be in a financial position to adapt to market uncertainties," said Boeing Commercial Airplanes Chief Executive Scott Carson in a statement.

Boeing said it expects to begin laying off people in the second quarter of 2009, and would provide 60-day notices starting in February.

The company did not say if the job cuts would affect the production of their oft-delayed 787, which is expected to be delivered in 2010.

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