China's Tencent buys 5% stake in Tesla (TSLA)

Boeing Layoffs 2017: Boeing Co (BA) Warns of Job Cuts, Buyouts

Buyout offers will be sent to employees this week

   

Boeing Co (NYSE:BA) is planning to lay off employees in the first part of 2017 due to cost cuts.

Boeing Co, BA, Boeing LayoffsThe Boeing layoffs were discovered in a leaked internal memo. According to this memo, the airplane manufacturing company is planning to cut engineer jobs in early 2017. These layoffs are part of efforts to reduce costs at the company as aircraft sales stutter.

The engineer layoffs at Boeing Co will start with voluntary buyouts at first. The internal memo claims this letter will be sent to employees on January 13. These layoffs will then take place on April 21. BA will also send out involuntary layoff notices on Jan. 20 that will go into effect on March 24.

Boeing Co is also looking at two more rounds of engineer layoffs for 2017. These will take place later in the year. They will be affected by the number of voluntary buyouts in the first round this month. The engineer layoffs are part of a group of larger layoffs that the company will conduct. The target states for the layoffs and buyouts are California, South Carolina and Washington, reports CNBC.

“This is all stuff we negotiated into that contract,” Ray Goforth, executive director for BA’s Society of Professional Engineering Employees in Aerospace union, told The Seattle Times while speaking about a six-year contract signed last year. “We knew the company was going to lay off significant numbers of people. We wanted to make it as painless as possible.”

BA stock was largely unaffected by the layoff news.


Article printed from InvestorPlace Media, http://investorplace.com/2017/01/boeing-co-ba-boeing-layoffs/.

©2017 InvestorPlace Media, LLC