The Boeing Company (NYSE:BA) has revealed a consolidation plan that will see the aircraft manufacturer shift some of its defense works to other U.S. states. The move is expected to affect 2,000 jobs and reduce the company’s defense activities from its manufacturing base in Puget Sound region.
The plan is in line with The Boeing Company (NYSE:BA)’s focus of cutting down on costs and restructuring its defense activities. Familiar sources intimate that the company is planning to cut as much as $2 billion in expenditure in addition to the $4 billion the company already reduced over the past few years. Cutting down costs is said to be necessitated by the fact that the U.S. government’s defense spending has significantly been cut.
“Boeing’s commercial business is growing while its defense business is shrinking, so it’s logical that you would make these sorts of shifts as a way of using the workforce as efficiently as possible,”
said Loren B. Thompson of Virginia-based Lexington Institute.
The Boeing Company (NYSE:BA) revealed that about 900 jobs will be moved to Oklahoma, 500 jobs to St. Louis and the other 600 either transferred to other programs or phased out. The company however clarified that the completion of the restructuring will take 3 years and that it will do its best to ensure that employees get to new working areas even in its fast expanding commercial jetliner operations.
The decision is to differentiate The Boeing Company (NYSE:BA) from competitors and to stay ahead of the highly dynamic global defense industry. The company has further clarified that it will be able to use its resources more efficiently.
The Boeing Company (NYSE:BA) has planned a series of meetings with defense workers in Washington to share with them the decision and how it will be implemented.
This article has been written by Victor Ochieng.