Tags: Boeing | Will | Lay | Off | 30 | 000

Boeing Will Lay Off Up To 30,000

Wednesday, 19 September 2001 12:00 AM

The layoffs will be made by the end of 2002, Boeing officials said. The commercial airliner is expected to make a formal announcement later Wednesday.

Alan Mulally, president of the company's commercial aircraft division, said "It looks to us both domestically and internationally that the airlines are going to need substantially fewer airplanes than they did before last week."

"We profoundly regret that these actions will impact the lives of so many of our highly valued employees," he said.

"However, it is critical that we take these necessary steps now to size the Commercial Airplanes business to support the difficult and uncertain environment faced by our airline customers."

The layoffs, beginning before the end of the year, are expected to affect the plane maker's 93,000 commercial aircraft employees in the Seattle area and Wichita, Kan. Prior to the attacks, Boeing expected to ship 538 planes. But Mulally said that number will be reduced to 500.

Even if the company is able to secure a large relief package from Congress, the layoffs will still likely occur, according to the executive.

"The company is ready to apply all of its wide-ranging technological resources in stepping up to the challenges created by these tragic events," said Boeing chairman and CEO Phil Condit.

"We are making tough business decisions and working closely with our commercial and government customers to rebuild public confidence in a safe and secure U.S. air transport system."

"These actions will also enhance the company's ability to maintain its solid financial position, strong liquidity and premier debt ratings. These are critical factors in times of business uncertainty and financial stress," Condit said.

Airline officials are expected to ask Congress for as much as $24 billion in relief in hearings set to begin Thursday.

Following the attacks, many airlines contacted Boeing and its rival, Airbus, to discuss delaying aircraft delivery dates.

Mark Blondin, president of the International Association of Machinists in Seattle, said his union expected to receive negative news from Boeing about the possibility of short-term earning losses, but that company officials were optimistic that the slump in production would be temporary.

"Obviously, we're concerned here," he said. "If there are job reductions, we want to make sure that this is done equitably and that some of this burden is put on the subcontractors and vendors," the Journal reported.

Copyright 2001 by United Press International. All rights reserved.

© 2019 Newsmax. All rights reserved.

   
1Like our page
2Share
Pre-2008
The layoffs will be made by the end of 2002, Boeing officials said. The commercial airliner is expected to make a formal announcement later Wednesday. Alan Mulally, president of the company's commercial aircraft division, said It looks to us both domestically and...
Boeing,Will,Lay,Off,30,000
397
2001-00-19
Wednesday, 19 September 2001 12:00 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved