Boeing Is Cutting Jobs Locally
Boeing is cutting 10 percent of defense unit execs as it aims to realize $1.6 billion in savings.
It's third quarter forecast may have showed gains, but Boeing still intends to cut jobs.
The plan is to cut 10 percent of the management positions at its Hazelwood-based Boeing Defense, Space and Security (BDS) unit by the end of next month. This is part of an effort to cut $1.6 billion in costs from the unit beginning next year through 2015.
"We are at one of the most challenging yet opportunity-rich times in our history," said Dennis Muilenburg BDS president and CEO. "While funding for the U.S. Department of Defense is under extreme pressure, we're innovating and expanding our core, in the U.S. and around the globe, to sustain and grow our business."
The cuts are part of a major restructuring that includes reducing BDS divisions from 13 to 10, Reuters reports. The news organization cites a message to employees from BDS President and CEO Dennis Muilenburg obtained by the news agency. Muilenburg said in the message that the total savings would reach $4 billion.
Boeing also announced Wednesday plans to move BDS executive positions and expects to have 30 percent fewer executives in the unit by year’s end, compared with 2010.
The company said BDS already has trimmed $2.2 billion in costs by reducing overhead, making efficiency improvement with suppliers and cutting facilities space. The unit is implementing a reduction in facilities space of more than 10 percent and is looking for more cuts to be announced and effective Jan. 1.
"Our people and innovation are our competitive advantages," Muilenburg said. "We are investing in both even as we are exceptionally focused on providing affordable solutions for our customers."
Boeing Defense, Space & Security, a unit of Chicago-based Boeing Co. (NYSE: BA) is a $32 billion business with 61,000 employees worldwide, including about 14,750 locally.
Based in Hazelwood, BDA is a 32 billion business with 61,000 employees worldwide.
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