Boeing Announces Big Layoffs in Defense Division

TNHermit · #1 11/07/12, 05:45 PM

Boeing announced a major restructuring of its defense division on Wednesday that will cut 30 percent of management jobs from 2010 levels, close facilities in California and consolidate several business units to cut costs.

Boeing Headquarters
The company [BA 70.11 -1.47 (-2.05%) ] told employees about the changes on Wednesday, in a memo obtained by Reuters and confirmed by Boeing.

Boeing, the Pentagon's second-largest supplier, said the changes were the latest step in an affordability drive that has already reduced the company's costs by $2.2 billion since 2010, according to the memo.

The measures come as U.S. weapons makers are under pressure to cut costs and preserve profit margins amid dwindling defense spending in the U.S.

Boeing Announces Big Layoffs in Defense Division - US Business News - CNBC

Txsteader · #2 11/07/12, 06:24 PM

Interesting that they chose to make the announcement today.

cvk · #3 11/07/12, 06:34 PM

Awww, my whole family worked for Boeing at one time or another--myself included. They always go like crazy and then lay off like crazy. The nature of the beast. Just their standard operating procedure.

katydidagain · #4 11/07/12, 06:44 PM

Quote:

Originally Posted by cvk

Awww, my whole family worked for Boeing at one time or another--myself included. They always go like crazy and then lay off like crazy. The nature of the beast. Just their standard operating procedure.

I haven't worked for them but did for another huge government contractor; I was in the office along with the President, CFO, Controller and support staff where I didn't earn big money but was pretty much guaranteed employment. Layoffs among those hired to support contracts is normal; they know going in they are "terminal". But announcing it today is troublesome for me.

simi-steading · #5 11/07/12, 06:46 PM

I had read somewhere they were going to announce this sooner, but some how were talked out of making the announcement public by the current administration, until after the election to help keep the unemployment numbers looking good... Wish I could remember where I read that to link it.

TNHermit · #6 11/07/12, 06:59 PM

I've spent the day reading of small business after small business saying they were waiting for the election. and now have decide to close of cut back to 49 people and 25 hours a week.. i have an ongoing alert

This kind of stuff is all over

Quote:

@DrMartyFox your friend is right. My electrical company will probably shut the last door very soon. Employees gone, no need

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Day one...aftermath..DH went to work..they called a meeting empl will lose $3500 per yr~their Healthcare went up 30% + no longevity bonus~

TNHermit · #7 11/07/12, 07:52 PM

Quote:

Originally Posted by cvk

Awww, my whole family worked for Boeing at one time or another--myself included. They always go like crazy and then lay off like crazy. The nature of the beast. Just their standard operating procedure.

Its coming out now that they made a backroom deal not to announce till after the election.

Awnry Abe · #8 11/07/12, 09:43 PM

Dang. BIL works for them in St. Louis. I'll have to bug his ear.

TNHermit · #9 11/08/12, 10:56 AM

And it continues. these things are coming in hot and fast

Quote:

Photo Credit: Gettyimages
KevinW

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LAS VEGAS (CBS Las Vegas) — A Las Vegas business owner with 114 employees fired 22 workers today, apparently as a direct result of President Obama’s re-election.

“David” (he asked to remain anonymous for obvious reasons) told Host Kevin Wall on 100.5 KXNT that “elections have consequences” and that “at the end of the day, I need to survive.”

Here’s an excerpt from the interview. Click the audio tab below to hear even more from this compelling conversation:

“I’ve done my share of educating my employees. I never tell them which way to vote. I believe in the free system we have, I believe in the right to choose who they want to be president, but I did explain as a business owner that I have always put my employees first. I always made sure that when I went without a paycheck that [I] made sure they were paid. And I explained that I always put them first and unfortunately I’m at a point where I’m being forced to have to worry about me and my family now and a business that I built from just me to 114 employees.

“I explained to them a month ago that if Obama gets in office that the regulations for Obamacare are gonna hurt our business, and I’m gonna have to make provisions to make sure I have enough money

to cover the payroll taxes, the additional health care I’m gonna have to do, and I explained that to them and I said you do what you feel like in your heart you need to do, but I’m just letting you know as a warning this is things I have to think of as a business owner.[/QUOTE]

Vegas Employer: Obama Won, So I Fired 22 Employees « CBS Las Vegas

simi-steading · #10 11/08/12, 11:09 AM

I believe people who are acting now are fool hardy... They DON'T know what will happen, NOTHING has changed yet, and they are just being paranoid and selfish.

A good business owner wouldn't make decisions without cold hard facts to base a sound judgement on.

I hope people like that owner put their selves out of business over their own stupidity.

TNHermit · #11 11/08/12, 11:14 AM

Quote:

Originally Posted by simi-steading

I believe people who are acting now are fool hardy... They DON'T know what will happen, NOTHING has changed yet, and they are just being paranoid and selfish.

A good business owner wouldn't make decisions without cold hard facts to base a sound judgement on.

I hope people like that owner put their selves out of business over their own stupidity.

Your guy won. his intentions to feed off those working to satisfy the leeches. Those people who provided that have decide the earth with it

simi-steading · #12 11/08/12, 11:18 AM

Ain't my guy... if you would have put a gun to my head and told me I had to vote for one of those bozos, I would have said "Pull the trigger, it's gonna be much less painless..."

AngieM2 · #13 11/08/12, 11:32 AM

how about worring about those that are laid off and not the pointing political fingers so much. It is what it is, now to live through it.

simi-steading · #14 11/08/12, 11:35 AM

I agree Angie, and that's why I said it was pretty fool hardy and stupid of an employer to do something like this now, before there's been any change in the employer's payroll expenses, or in his income...

I agree with something I read in the political forum about this... that it's only taking out their anger on employees. Not right at all.

(BTW, how long you gotta be a member and how many posts do you need before you can post in chat or politics?)

sidepasser · #15 11/08/12, 01:09 PM

Actually many small business owners already KNOW how much Obamacare is going to cost and they are either reducing hours to part time, laying off people, or not hiring additional people to add to the cost of the payroll. Business owners don't make money by sticking their heads in the sand and waiting to "see what will happen". Smart business owners plan 2-5 years ahead (called short term planning) with their sights set on long term (6-20 years) ahead. Immediate planning is less than one year. People that own business knew as soon as their accountants and financial advisors could calculate the cost of Obamacare how much it would cost them.

What they were waiting for (along with Big Business) is to see if Romney would win the election and/or whether the Republicans would take the Senate. If that happened, the possibility of Obama Care being repealed was much better than if Obama and the Dems retained their present positions. So the truth of the matter is that now we have what we have and business owners who have planned ahead are now executing their plan.

There is no point waiting to "see what will happen" when Obama Care has built in timelines for execution of certain provisions. Those folks that realized they cannot continue to profit in the same scenario as they had prior to Obamacare are simply trying to preserve what profits they can.

Most people realize that one can't take more water out of the well than is coming in - otherwise one has a dry well and no one drinks.

In the interest of keeping this topic survival related, I would be doing some research as an employee to see if you fall into one of the sectors that will be hit hard by the either the sequestration or the coming taxes on medical devices, or whether you work for a small business that has "just over the number of employees required" under Obamacare and if so - where do YOU fall in the seniority if your company is one of those that "last one hired is first one laid off". Perhaps prep a bit more, pay down more debt, and look around for a part time job just in case you (generic you ) get laid off. Perhaps increase the "rainy day fund" to cover any necessary bills like mortgage, utilities, car/truck payments, college tuition payments for children, etc.