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Boeing Announces Big Layoffs – Violates WARN?

And speaking of unemployment, we have this from Reuters:

Boeing Announces Big Layoffs in Defense Division

Wednesday, 7 November 2012

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.

Management jobs are not unionized.

The company told employees about the changes on Wednesday, in a memo obtained by Reuters and confirmed by Boeing.

The day after election day. What timing, huh.

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.

You see? Defense spending is just "dwindling." It’s not being slashed to the bone by Obama.

In a message to employees, Dennis Muilenburg, chief executive of Boeing Defense, Space & Security, said the company aimed to cut costs by an additional $1.6 billion from 2013 through 2015… He said the total savings would reach $4 billion…

He said Boeing would cut the number of executive jobs an additional 10 percent by the end of 2012, bringing overall cuts in its executive team to 30 percent for the past two years…

"By the end of 2012" means these layoffs will occur within 60 days. Which means these layoffs will occur within 60 days. Which would seem to mean that Boeing is violating the WARN Act, which requires employees be give 60 day advance warning before being laid off.

Which is a detail that Reuters does not even mention, even though it was in the news recently. Though maybe not in the mainstream news

Anyway, it will be interesting to see if the Obama campaign will stand behind their solemn promise to cover the legal costs and fines any violators of the WARN Act will incur if any of Boeing’s employees sue.

Boeing said the changes were not a response to the threat of additional, across-the-board U.S. budget cuts due to take effect on Jan. 2, or the outcome of U.S. elections, but represented another step in its continuing drive to "be more competitive while investing in technologies and people."

And we believe them, too. But this is what you have to say if you want to continue to get any more defense contracts. No matter how meager.

And when you don’t want to be sued for violating the aforementioned WARN Act.

This article was posted by Steve on Thursday, November 8th, 2012. Comments are currently closed.

6 Responses to “Boeing Announces Big Layoffs – Violates WARN?”

  1. BannedbytheTaliban says:

    “continuing drive to “be more competitive””

    Bull, they have no competition. They do not compete in a free market and operate under the fascist model of private control of a company whose only function is to placate a government’s wishes. A government that would be wise to keep them happy less they pack up and head to China like all the other victims of Democrat policies.

    • 4USA says:

      Ever hear of Airbus? If Boeing was Pepsi, Airbus would be Coke and it is a vicious competition.

    • Rusty Shackleford says:

      Boeing already has major sections of the 747 built in the Shenyang factory in China. Being in competition with Airbus, they have to find as many sources as they can to built their aircraft but the most expensive and nationally sensitive stuff is still built in the US, but that, too is changing. The Chinese have operatives inside the Boeing plants (shock, surprise) and the indigenous Chinese aircraft builders are already maknig good use of the espionage.

  2. GetBackJack says:

    I suspect being anything other than an inner city illiterate foul mouthed low pants hood on the take and on the prowl is suspicious and must be viewed as anti-America.

    That means you, btw.

  3. yadayada says:

    can’t allow Boeing to poop out. GE needs to sell engines. and GE is a huge obummer supporter.

  4. canary says:

    Boeing changed directions of following it’s won plans and switched to Obama’s green incentive plan for the federal aid, and they come out losing. Oh those strings Obama attaches.

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