Boeing to slash 3% of its workforce

Boeing Commercial Airplanes announced plans to cut approximately 4,500 positions, or 3% of its workforce, from late Feb-09, as aircraft demand weakens. Scott Carson, President and CEO, stated, "we have made significant strides in recent years to achieve greater efficiency and productivity, but we still face challenges that we must address".

He added, "we believe that acting now will allow us to be in a financial position to adapt to market uncertainties, meet our customer commitments, continue investing in our current and future product lines, and protect our competitiveness in a fiercely competitive business environment.

Orders for Boeing aircraft fell 54% in 2008. The reduction will bring Commercial Airplanes' employment to approximately 63,500, similar to the level it was at the start of 2008.

Boeing shares fell 0.8% on 09-Jan-09.

Selected Aviation suppliers daily share price movements (% change): 09-Jan-09