Boeing undertakes new cost cutting measures, lays off more engineers

The development underscores increased competition in the U.S. aircraft manufacturing market.

As per source familiar with the matter at hand, Boeing Co has notified its employees that it has planned for another round of involuntary layoffs which will see hundreds of engineers at its commercial airplanes unit leave their jobs.

This latest job cut by Boeing, following its involuntary reduction of 245 workers, is in response to increased competition in the aircraft market.

According to its internal memo signed by John Hamilton, vice president of engineering at Boeing Commercial Airplanes, the additional layoffs will start from June 23.

“We are moving forward with a second phase of involuntary layoffs for some select skills in Washington state and other enterprise locations,” reads the memo.

“We anticipate this will impact hundreds of engineering employees. Additional reductions in engineering later this year will be driven by our business environment and the amount of voluntary attrition.”

In the quarter between January to March, Boeing’s airplane unit had slashed several hundred engineering jobs through voluntary redundancies .

In this latest move, the aerospace and defence company has stated the job cuts will effect managers and executives and will be achieved through a combination of voluntary layoffs, attrition, and involuntary layoffs.

“In an ongoing effort to increase overall competitiveness and invest in our future, we are reducing costs and matching employment levels to business and market requirements,” reads the memo.

It was not immediately clear whether workers at Boeing’s Dreamliner factory located in South Carolina will be affected by this new development.

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