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Boeing to Axe 20,000 to 30,000 Jobs by End of 2002
The US aerospace giant Boeing Company announced Tuesday a massive layoff plan in a rapid response to the airline industry crisis caused by the latest terror attacks.
In a statement issued from its new headquarters in Chicago, Boeing said that, given the impacts of the horrific attacks and the resulting capacity reductions by its airline customers, Boeing 's Commercial Airplanes unit will reduce its employment by approximately 20,000 to 30,000 people by the end of 2002.
"We profoundly regret that these actions will impact the lives of so many of our highly-valued employees," said Alan Mulally, president and CEO of Boeing Commercial Airplanes.
"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."
Last Tuesday, terrorists hijacked four jumbo jets -- two rammed into World Trade Center twin towers in New York and one slammed into the Pentagon in Washington. A fourth crashed in Pennsylvania. Over 5,000 people were killed and reported missing in the worst attacks ever in U.S. history.
Due to the fear caused by the attacks, customers are expected to shy away from air travel as possible as they can, thus reducing the demand for air transportation.
Boeing has revised its delivery projections for commercial airplanes. It reduced the forecast of deliveries for 2001 from 538 aircraft to 500, and the 2002 deliveries from 510 to 520 to as low as 400. Current estimates for 2003 indicate a downward delivery trend will continue.
In order to restore the consumer confidence, Boeing said it is working closely with the government on improving air transport safety and security. It has also launched an internal initiative under the direction of its chief technology officer to solicit and review ideas from Boeing engineers for improving these areas.
Meanwhile, the company is working to apply its extensive capabilities in intelligence gathering, communications and space, as well as military aircraft and missiles, in the war against terrorism.
"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.
"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.
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