Boeing Plans Voluntary Layoff Program in Early 2017

DefenseDow Jones Newswires

Boeing Co. said Monday it would launch a voluntary layoff program early next year and may resort to compulsory job cuts to help trim costs at its commercial jetliner arm.

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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.

As of Nov. 24, the unit had 77,393 employees.

"While we have made progress in reducing costs and improving affordability, we will need to do more in 2017," Boeing Vice Chairman Ray Conner and Kevin McAllister, who succeeded him as head of the jetliner business, said in a note to staff.

Boeing didn't detail how many job cuts are planned next year. They will come from a mix of attrition and not filling open positions, as well as the planned voluntary layoff program and potential compulsory cuts.