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News Desk: Boeing Cuts 30% of Management Jobs in Major Restructuring

THE SECOND-BIGGEST Pentagon supplier intends to expand the $2 billion cuts already made since 2010, expecting the total to be $4 billion by the time it’s completed.

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. [CNBC]

Lean and mean seems like an apt description of the goal.

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3 Responses to News Desk: Boeing Cuts 30% of Management Jobs in Major Restructuring

  1. Cujo359 November 8, 2012 at 2:45 pm #

    When Boeing swallowed up McDonnell Douglas many years ago, you could see days like this coming. Boeing has had a lot of excess plant for some time, and the market for airliners didn’t grow enough to make it worth holding onto.

    Combine that with their foolish desire to outsource their production, and this day was almost assured.

  2. newdealdem1 November 8, 2012 at 4:57 pm #

    Cujo, we also have the prior example of Grumman here on Long Island which started in 1929. During the height of it’s glory days, it employed around 23,000 employees on Long Island (my dad used to work there some years ago).

    The end of the Cold War, at the beginning of the 1990s, reduced the need for defense spending and led to a wave of mergers as aerospace companies shrank in number. My dad’s brother retired a few years before 1994 when Northrop bought Grumman for $2.1 billion to form Northrop Grumman which occupies office space here on the Island but to an extremely cut work force of around 2000 employees.

    No one wants to see people lose their jobs but the bloat in this industry has been extreme for many years now and something has had to give.

    Cutting expenditures to defense contractors to reflect reality (and not continue to feed the military industrial complex beast) is long overdue and I hope the cuts in defense as proposed in the “grand bargain” happen.

    • Cujo359 November 8, 2012 at 8:10 pm #

      Actually, I think that has more to do with how they spend the money nowadays. It used to be that the DoD would try many different aircraft designs for a particular role. Now, thanks to the “systems engineering” craze, every design has to be the bestest possible for every possible need, so all the extra money goes into evaluation, review, refinement, and testing. Instead of having a new aircraft program every year or two, as we did back in Grumman’s heyday, we now have one or two a decade. There’s still a competition, but now the losers have to find something else to do, because there’s not anything else to look forward to.

      In short, there’s just not room for lots of companies, like there once was.

      We didn’t save any money, and I don’t think the end product is any better, but we employ a lot more people, and spend lots more money, per development program than we once did.

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