1. Welcome! Please take a few seconds to create your free account to post threads, make some friends, remove a few ads while surfing and much more. ClutchFans has been bringing fans together to talk Houston Sports since 1996. Join us!

So it begins: Boeing Announces Big Layoffs in Defense Division

Discussion in 'BBS Hangout: Debate & Discussion' started by basso, Nov 7, 2012.

Tags:
Page 1 of 4
  1. basso

    basso Member
    Supporting Member

    Joined:
    May 20, 2002
    Messages:
    33,362
    Likes Received:
    9,290
    odd this news hits today.

    --
    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.


    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.

    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.

    "We are raising the bar higher because our market challenges and opportunities require it, and our customers' needs demand it," Muilenburg said.


    RELATED LINKS
    He said the total savings would reach $4 billion, making the company healthier and better able to deal with a tougher marketplace.

    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, a move that would result in a 10 percent cut in management costs.

    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."

    Boeing said it could not project exactly how workers would lose their jobs because it would try to place people in its growing commercial business.




    A company spokesman declined to say how many jobs had already been cut from the 2010 level.

    Rival Lockheed Martin has reduced its management ranks by about 25 percent in recent years after announcing a voluntary buyout.

    Boeing said it would also expand its efforts to cut supply-chain costs by working closely with its suppliers, but did not provide details.

    Defense consultant Loren Thompson said the changes were needed to ensure Boeing's continued profitability.

    "Many investors focus on Boeing's commercial operations," Thompson said, referring to the jet-making business.

    "But defense provides 40 percent of the company's revenues and returns, so controlling costs there is crucial to maintaining the company's overall profitability."

    Boeing and other top weapons makers like Lockheed Martin [LMT 91.15 -3.72 (-3.92%) ], Northrop Grumman [NOC 66.70 -3.18 (-4.55%) ] and Raytheon [RTN 55.47 -1.87 (-3.26%) ] have focused heavily on cutting costs and drumming up foreign sales to maintain profits as they prepare for a sustained period of weaker defense budgets.

    Copyright 2012 Thomson Reuters. Click for restrictions.
     
    #1 basso, Nov 7, 2012
  2. Northside Storm

    Northside Storm Member

    Joined:
    Dec 24, 2007
    Messages:
    11,262
    Likes Received:
    450
    Did the notion that government cuts lead to economic contraction just hit you?
     
    #2 Northside Storm, Nov 7, 2012
  3. DonnyMost

    DonnyMost Member
    Supporting Member

    Joined:
    May 18, 2003
    Messages:
    48,988
    Likes Received:
    19,926
    Cutting defense spending is not a bad thing.
     
    #3 DonnyMost, Nov 7, 2012
  4. R0ckets03

    R0ckets03 Member

    Joined:
    Nov 11, 1999
    Messages:
    16,326
    Likes Received:
    2,042
    Feel bad for the people losing their jobs, but their have to be cuts in defense spending for the overall benefit.
     
    #4 R0ckets03, Nov 7, 2012
  5. Classic

    Classic Member

    Joined:
    Dec 21, 2007
    Messages:
    6,101
    Likes Received:
    608
    If only Romney were elected and we got war with Iran, we could have saved all those jobs. :(
     
    #5 Classic, Nov 7, 2012
  6. ROXRAN

    ROXRAN Member

    Joined:
    Oct 12, 2000
    Messages:
    18,813
    Likes Received:
    5,218
    Yea losing jobs is never a good thing
     
    #6 ROXRAN, Nov 7, 2012
  7. SamFisher

    SamFisher Member

    Joined:
    Apr 14, 2003
    Messages:
    61,823
    Likes Received:
    41,295
    Thanks Republicans for debt ceiling ****ery which caused this.
     
    #7 SamFisher, Nov 7, 2012
  8. Nook

    Nook Member

    Joined:
    Jun 27, 2008
    Messages:
    59,892
    Likes Received:
    132,807
    332-206
     
    #8 Nook, Nov 7, 2012
  9. KingCheetah

    KingCheetah Atomic Playboy
    Supporting Member

    Joined:
    Jun 3, 2002
    Messages:
    59,079
    Likes Received:
    52,748
    Snicker.
     
    #9 KingCheetah, Nov 7, 2012
  10. ROXRAN

    ROXRAN Member

    Joined:
    Oct 12, 2000
    Messages:
    18,813
    Likes Received:
    5,218
    Suddenly I'm hungry. Dammit!
     
    #10 ROXRAN, Nov 7, 2012
  11. Codman

    Codman Member

    Joined:
    Jun 24, 2001
    Messages:
    6,796
    Likes Received:
    11,954
    Basso, why are you still posting? Your guy lost. You have no reason to be here anymore.
     
    #11 Codman, Nov 7, 2012
  12. Buck Turgidson

    Buck Turgidson Member

    Joined:
    Feb 14, 2002
    Messages:
    100,725
    Likes Received:
    102,964
    [​IMG]
     
    #12 Buck Turgidson, Nov 7, 2012
  13. Space Ghost

    Space Ghost Member

    Joined:
    Feb 14, 1999
    Messages:
    18,163
    Likes Received:
    8,574
    Unless its overpaid union jobs. Then we should spend billions to save certain companies.
     
    #13 Space Ghost, Nov 7, 2012
  14. Northside Storm

    Northside Storm Member

    Joined:
    Dec 24, 2007
    Messages:
    11,262
    Likes Received:
    450
    Private industry is being weaned off the government teat. Isn't this what right-wingers desire the most?

    An addendum to the auto bailout---get back to me when the reason why your business is failing is because credit markets froze due to Wall Street irresponsibility, and not because you had to adjust to government suddenly deciding 15 carrier groups can't stop a suicide bomber.
     
    #14 Northside Storm, Nov 7, 2012
    1 person likes this.
  15. CometsWin

    CometsWin Breaker Breaker One Nine

    Joined:
    May 15, 2000
    Messages:
    28,028
    Likes Received:
    13,051
    Unfortunately many conservatives don't seem to understand the correlation between government spending and jobs or the economy. They think when government spends less it's inherently good and there are no effects on jobs or the economy. It's one of the more amazing failure to grasp examples in those circles.
     
    #15 CometsWin, Nov 7, 2012
  16. thadeus

    thadeus Member

    Joined:
    Sep 14, 2003
    Messages:
    8,313
    Likes Received:
    726
    so basso, you're in favor of the government spending more money to keep people employed?

    Also: if Boeing actually gave a **** about its employees, it would have simply accepted a tiny fraction less profit in order to keep its loyal employees working.
     
    #16 thadeus, Nov 7, 2012
  17. Space Ghost

    Space Ghost Member

    Joined:
    Feb 14, 1999
    Messages:
    18,163
    Likes Received:
    8,574
    I don't have a problem with government cutting spending, as long as its across the board and not favoring certain politically skewed groups.

    Defense spending creates more jobs than you realize. But also noted, there is plenty of inefficiencies, which is a common thread in anything related to government.

    And just a small reminder that there are more than 3 auto manufactures in the United States. We could probably name a dozen of them. Only two of them needed bailouts. It wasn't the auto industry that was nearing collapse, it was union jobs. If these two companies would provide quality cars, then perhaps people would buy them and they would not need a bailout.
     
    #17 Space Ghost, Nov 7, 2012
    1 person likes this.
  18. CometsWin

    CometsWin Breaker Breaker One Nine

    Joined:
    May 15, 2000
    Messages:
    28,028
    Likes Received:
    13,051
    It's not our oil and gas industry that's going under, it's just Exxon. There are a lot of oil and gas businesses in the United States. Whut? There's a reason they call them the big three. It's because they employ a quarter of a million people directly and like one in ten jobs overall are tied to that employment. Also, blaming a company's problems on the unions is so weak sauce. Unions collectively bargain their contracts, they don't dictate them. Bargain more effectively and you won't have to come back and grovel to change the contracts.
     
    #18 CometsWin, Nov 7, 2012
  19. meh

    meh Member

    Joined:
    Jun 16, 2002
    Messages:
    16,175
    Likes Received:
    3,388
    Since defense spending makes up 50% of Government's total discretionary spending, I take it you wish to match $1 of military cuts with $1 of any other cuts?
     
    #19 meh, Nov 7, 2012
  20. Pete Chilcutt

    Pete Chilcutt Member

    Joined:
    Jan 28, 2009
    Messages:
    5,535
    Likes Received:
    280
    The sun rose today, it was Obama's fault. :rolleyes:
     
    #20 Pete Chilcutt, Nov 7, 2012
(You must log in or sign up to post here.)
Page 1 of 4

Share This Page