Boeing To Cut 4,500 Jobs In Effort To Reduce Costs

Seattle, WA (AHN) - Boeing Co. announced Friday it will cut 4,500 jobs in its commercial airplanes business unit in 2009 as it aims to reduce costs during the slumping world economy.

The company plans to make the reductions in the second quarter of 2009 with the majority taking place in its Washington state locations.

Impacted employees will receive 60-day notice come late February and will be eligible for layoff benefits and job-transition services.

"We are taking prudent actions to make sure Boeing remains well positioned in today's difficult economic environment," said Scott Carson, president and CEO of Boeing Commercial Airplanes, in a company statement.

"We regret the disruption to those affected by this decision, but we believe that acting now will allow us to be in a financial position to adapt to market uncertainties," Carson said.

Boeing said many of the job reductions will be in overhead functions and areas not directly associated with airplane production.

The move will reduce the unit's workforce of 68,000 by nearly 7 percent.

Boeing's announcement comes just hours after the Labor Department reported 2.6 million jobs were lost in 2008, the worst yearly decline since 1945.

Shares of Boeing are near the breakeven level at $44.80 in Friday afternoon trading.