Thursday, November 8, 2012

Boeing Announces Huge Job Cuts Day After Election

Boeing announced Wednesday that it was closing facilities in California and cutting back on 30% of management jobs. The cuts come on the anticipation of the reduction of contracts and services over the next several years. These cuts will amount to $4 billion saving for the aerospace company.

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.

I wonder if this is the shape of things to come.


KN@PPSTER said...

Boeing Defense's St. Louis facility is just down the street from me (a couple of people in my apartment courtyard work there).

In brief, the key word is "announces." It's a political move to put pressure on Congress to reach some kind of budget compromise so that there's no slowdown in the growth of the size of Boeing's welfare checks.

The Right Guy said...

Could very well be Tom, or it could be they have to cut. We'll see. I'd never discount what you say though...

KN@PPSTER said...

Well, I had an earlier heads up on this -- a local St. Louis story that was very specific: Boeing is cutting managerial staff "in anticipation of defense cuts."

The only way there will be any "defense" cuts is if there's no budget deal at all and the automatic stuff kicks in.

If there IS a budget deal, it will presumably include "defense" GROWTH ranging from 10% over the next five years (the Obama administration's proposal) to 18% over the next five years (the GOP proposal).

And in any of the three aforementioned scenarios, it is only future "defense" contracts that are affected.

Therefore, what Boeing is doing is political theatre -- "this is what happens if you don't reach a deal."

Chuck said...

Welfare checks. So Boeing gets paid to do nothing?

Bullshit. As usual.

The Right Guy said...

You know how lazy those for profit companies are.

KN@PPSTER said...

No, Chuck, Boeing doesn't get paid to do nothing.

Neither did the old Civilian Conservation Corps people. They got paid to dig holes, and then fill them in.

Boeing gets paid to build stuff that isn't required for defense, instead of stuff that it would have to sell to willing customers in a free market. It gets paid to buidl that stuff because it contributes to, lobbies and bribes politicians to spend that money with them.

It's not just welfare, it's a particularly slimy and damaging form of welfare.

KN@PPSTER said...

Anyway, the interesting thing is not that Boeing is a corporate welfare queen.

The interesting thing is whom the message is aimed at.

Presumably Boeing has known for some time what they were planning to do, but they announced it today instead of, say, the week before the election.

The week before the election, it would have helped Romney, not just in Missouri but in Illinois.

And it would have helped Todd Akin, who used to be known around here as "the Congressman from Boeing."

The week AFTER the election, its main effect is to give Claire McCaskill cover to push the Dems to compromise on "defense" spending to save jobs in her state.

Chuck said...

"It's not just welfare,"

No. It's not welfare at all. As usual, you're a lying sack of shit.

Weldon said...

Didn't Obama pressure defense contractors not to announce layoffs until the election?


You live by the contract, you die by the sequester. If Boeing wants to make products the market will support, they'll do well.