Majority of Boeing layoffs to hit by June

The Boeing Co. plans to cut the majority of the 20,000 to 30,000 workers targeted for layoff by next June, eliminating jobs faster than some union leaders expected.

However, the company did not announce deeper job cuts, holding to the target yesterday, said Boeing spokesman Tom Ryan.

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As it grapples with one of the greatest financial crises in the history of the airline industry, Boeing plans to cut production workers, engineers and support staff by mid-2002, the company said last night.

"In order to match our reduced production rates, we will need to accomplish the majority of the 20,000 to 30,000 reductions in 2002 employment by midyear," Jerry Calhoun, director of people at Boeing's commercial airplane unit, said in a message sent to employees yesterday.

News that the ax would fall so quickly stung some union leaders.

"They are rushing to cut employees to protect profits. I would like to see a better balance of those two," said Charles Bofferding, executive director of the Society of Professional Engineering Employees in Aerospace. "The concern is that this could be even worse then we thought."

Since the Sept. 11 terrorist attacks, Boeing's customers, the airlines, have been buffeted by bad news nearly every day. Passengers steered clear of flying, depressing revenue and, in turn, airlines' interest in buying new aircraft.

For example, UAL Corp., parent of United Airlines, yesterday posted a record $1.16 billion loss in the third quarter and warned that revenue in the fourth quarter would be even worse.

America West Airlines Inc., meanwhile, received notices of default from aircraft lessors after suspending payments on jets last month.

Boeing has rushed to respond to these problems, planning to cut production rates by 50 percent by the middle of next year.

In addition, the nation's leading exporter is considering stopping production of its slow-selling 717 jet in California and closing its Spokane plant.

The slumping market has even led Boeing to resurrect the idea of movingRenton production work 40 miles north to Everett.

Alan Mulally, head of Boeing's commercial airplane group, said last week that no decision had been made but that officials were studying the idea.

Earlier this fall, Boeing executives laid out an emerging plan under which the company would cut 10 percent of its total commercial airplane work force by Dec. 31, then consider laying off another 10 percent of that total by the middle of 2002 and yet another 10 percent by the end of next year, company and outside sources said in the past.

They clarified that plan yesterday, saying the company will make the majority of those cuts by the middle of 2002, according to Ryan.

"Boeing corporate headquarters isn't the only thing that left Seattle. Along with the executives went any commitment to this region," Mark Blondin, president of the International Association of Machinists District Lodge 751, said in a statement released last night.

"Instead of embracing the opportunity and working with us, Boeing chose to conduct business as usual."

The company has already informed 9,000 commercial jet workers that they will be laid off on Dec. 14.

Boeing employs roughly 93,000 people in its commercial aircraft unit, with 60,000 in the Puget Sound area.

Now, Boeing plans to issue 60-day warning notices every month beginning Nov. 21, according to the employee message from Calhoun.

That means the next round of employees could be leaving as soon as Jan. 25.

"The current business environment requires these extraordinary actions in order for Boeing Commercial Airplanes to respond to the market," Calhoun wrote in the message sent yesterday.

This report includes information from The Associated Press and Bloomberg News. P-I reporter Paul Nyhan can be reached at 206-448-8145 or paulnyhan@seattlepi.com

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