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Boeing To Lay Off Hundreds of Engineers Amid Sales Slowdown (reuters.com)

According to Reuters, Boeing has warned its employees that it "planned another round of involuntary layoffs that would affect hundreds of engineers at its commercial airplanes unit." From the report: The latest job cuts followed a prior involuntary reduction of 245 workers set for May 19 as the company responded to increasing competition and slowing aircraft sales. The additional layoffs are due to start June 23, according to the memo from John Hamilton, vice president of engineering at Boeing Commercial Airplanes. "We are moving forward with a second phase of involuntary layoffs for some select skills in Washington state and other enterprise locations," the memo said. "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."

62 of 120 comments (clear)

  1. Yeah by Anonymous Coward · · Score: 3, Insightful

    Some exec is looking at the millions he saved by getting rid of all that pesky R&D/QA and going, "Man, can you believe we spent millions on personnel who just made sure stuff worked right? Good thing that's all going to my fat bonus now."

    1. Re:Yeah by Anonymous Coward · · Score: 2, Insightful

      "Some exec is looking at the millions he saved by getting rid of all that pesky R&D/QA"

      Oh that happened already decades ago; R&D is now handled by university students who PAY for the privilege of having the IP transferred to their school...

      Then graduate with debt and zero guarantees of a job.

    2. Re: Yeah by ChrisMaple · · Score: 1

      Just bomb them back to the stone age -- oh wait -- too late.

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  2. Hmz.... by Anonymous Coward · · Score: 4, Insightful

    Why are the engineers always being fired first? Guess it's being something thougth by some random MBA course or something?

    1. Re:Hmz.... by Fringe · · Score: 5, Interesting

      It isn't really that the engineers get fired first; more like they don't even hire other disciplines now. The rest are outsourced to local manufacturers, or contracted workers through external companies, so it doesn't make the news when those reductions happen. Years ago Boeing manufactured a much larger percentage of their airplanes than they do now, and had a larger fraction of their administrative (e.g.) work done by employees.

    2. Re:Hmz.... by Anonymous Coward · · Score: 3, Informative

      That is correct. Most of the Dreamliner for example is made outside the US, and increasing amounts of engineering are moved as well.

      The days when Boeing made most of the airplane in the US are long gone, and have been for a while.

    3. Re:Hmz.... by Anonymous Coward · · Score: 2, Insightful

      Quick, name the professional body that regulates engineer's pay???!!!

      Oh yeah, unlike accountants, lawyers, notaries, or doctors, engineering isn't actually a profession. It's a masochist's wet dream.

      You ever hear about H1Bs for accountants, lawyers, notaries, or doctors?

      Hmmm.....

    4. Re:Hmz.... by ShanghaiBill · · Score: 1, Flamebait

      The days when Boeing made most of the airplane in the US are long gone, and have been for a while.

      That was because they tried to open a new factory in America, and the Obama administration said it was illegal for them to build a factory in a right-to-work state (which is most of them).

    5. Re:Hmz.... by Jzanu · · Score: 4, Informative

      You really need to read that article again, starting with the summary at the top. You are either illiterate or biased and missed the point that Boeing was violating federal labor laws by actively choosing to re-locate an existing plant to another state. Regulation of such actions is the squarely the NLRB's job. Details of the actual complaint are here.

    6. Re:Hmz.... by Jzanu · · Score: 4, Informative

      No, the timing of the relocation decision following a strike at the Washington plant such that the relocation was a punishment to those workers for the act of organizing and striking is what made the action illegal. Read it all again, and the NLRB page.

    7. Re:Hmz.... by ChrisMaple · · Score: 1

      Notary is a profession? In many of the United States, a notary's main function could be performed by a trained monkey.

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    8. Re:Hmz.... by Jzanu · · Score: 2

      And if you can't follow legal documents here is the law protecting those worker rights, from 1935.

    9. Re:Hmz.... by peragrin · · Score: 1

      So you think it is okay for a company to close a plant in a state where workers have rights and moved to a state where workers can be abused with twice the hours at the same rate of pay?

      In 30 years 90% of manufacturing will be done by robots in the USA. this will be good for a few and horrible for many.

      with luck we will switch to a just in time custom manufacturing using small businesses to keep people employed. with out that though huge numbers of people will be unemployed and sucking coffers dry.

      --
      i thought once I was found, but it was only a dream.
    10. Re:Hmz.... by ShanghaiBill · · Score: 2

      So you think it is okay for a company to close a plant in a state where workers have rights and moved to a state where workers can be abused with twice the hours at the same rate of pay?

      Yes, I think that companies should be able to locate jobs in any state they choose.
      Overtime laws in Washington and South Carolina are similar, so I think you are spouting nonsense about that.
      Hourly pay for Boeing's assembly line workers in SC is about 20% lower than in WA, but the cost of living is also considerably lower.

    11. Re:Hmz.... by khallow · · Score: 1

      So you think it is okay for a company to close a plant in a state where workers have rights and moved to a state where workers can be abused with twice the hours at the same rate of pay?

      Of course. I don't respect abusive labor unions, particularly in times when labor is under stress.

      In 30 years 90% of manufacturing will be done by robots in the USA. this will be good for a few and horrible for many.

      Unless, of course, that doesn't happen. We can implement employer-friendly social policies before then and keep that from happening.

    12. Re:Hmz.... by Anonymous Coward · · Score: 2, Interesting

      Idiot the complaint dealt with the contemporaneous actual 100% real threat form Boeing to move the production line. Read the god damn web page.

    13. Re:Hmz.... by TheRaven64 · · Score: 1

      So you think it is okay for a company to close a plant in a state where workers have rights and moved to a state where workers can be abused with twice the hours at the same rate of pay?

      I don't think it should be okay, but I do think that it's somewhat inconsistent that it's permitted when the jobs are moved to a different country without worker protection laws at all, yet not allowed when the jobs are moved to a different state that must comply with the same federal legal framework.

      --
      I am TheRaven on Soylent News
    14. Re:Hmz.... by OhPlz · · Score: 1

      Bullshit. I've worked at union shops before and I would have loved to be able to say no to joining or paying for the union. It should be a choice. Just like when the auto plant in the south said no to the union because they didn't want one either.

      Forcing workers to join an organization that they don't want to be part of is anti-worker.

    15. Re:Hmz.... by K.+S.+Kyosuke · · Score: 1

      Maybe they are test engineers?

      --
      Ezekiel 23:20
    16. Re:Hmz.... by K.+S.+Kyosuke · · Score: 1

      As opposed to a trained computer? All jobs are performed by trained monkeys. Or maybe they're trained apes; I'll gladly admit that my primate terminology isn't all that great in English.

      --
      Ezekiel 23:20
  3. Two months ago "Couldn't keep up with demand" by aratuk · · Score: 5, Interesting

    I wonder how this report squares with the one from late February that "Boeing and Airbus Can't Make Enough Airplanes To Keep Up With Demand". Poor workforce management? One of these two stories must misrepresent the truth.

    1. Re: Two months ago "Couldn't keep up with demand" by raftpeople · · Score: 4, Informative

      The demand for engineering resources and the demand for production resources don't necessarily coincide. The article you linked to is referring to production.

    2. Re: Two months ago "Couldn't keep up with demand" by Anonymous Coward · · Score: 1

      they're both wrong. they'll actually just hire new engineers via h1b within 12-18 months.

    3. Re: Two months ago "Couldn't keep up with demand" by aratuk · · Score: 1

      I'm sure there is some truth to this, but according to this story, Boeing is citing "slowing sales" as one of two reasons for the layoffs. How can that be the case, if demand exceeds production capacity?

      The other reason, "increased competition," seems all the more reason not to reduce the workforce responsible for developing the products in competition, if you can afford not to. Otherwise you're being very shortsighted, making yourself ever less competitive.

      There may be some detail to explain this situation better. Maybe there are subtypes of engineering specialty they no longer need due to changing technology or outsourcing certain skillsets to suppliers, et cetera, but that isn't at all what they're saying.

    4. Re: Two months ago "Couldn't keep up with demand" by ghoul · · Score: 4, Interesting

      Part of that is the long lead times for Airlines. Engineers would be needed now to be designing a new plane which would enter manufacturing 5-10 years from now. There may be enough manufacturing demand for the existing planes but not enough demand for a new plane. Actually since its pretty much impossible to forecast demand 10 years in the future most new planes are gambles and Boeing is not feeling flush enough to take the gamble. Things like Trump pissing off the rest of the world which takes away a large chunk of Boeings potential customers play into that. But other factors like China and Russia coming out with good enough alternatives meaning many of the middle income country markets will shift away from Boeing and Airbus in the 5-10 year timeframe.

      --
      **Life is too short to be serious**
    5. Re: Two months ago "Couldn't keep up with demand" by Richard_at_work · · Score: 1

      I called that story a load of bollocks back then - https://tech.slashdot.org/comm...

    6. Re: Two months ago "Couldn't keep up with demand" by Immerman · · Score: 1

      I don't see why. As a rule, engineers don't build things, they *design* them. Once the design is fully complete and you have a production model fully built and tested, I suspect you need far fewer engineers to build the next hundred. If you have lots of orders for existing models, but few orders for new or heavily customized designs, then you need lots of assembly technicians and may well be hitting the limits of your production facilities, even while you have a bunch of much more expensive engineers sitting around with nothing much to do.

      Now, if you expect custom orders to return in the near term, maybe even the mid term, then it probably makes sense to set those engineers working on "side projects" that don't directly effect the bottom line, just to retain their expertise - long term technology overhauls like speculative next-gen plane designs and other "busy work" that might prove valuable eventually, but whose primary purpose is just to retain talent. At some point though it becomes more cost effective to just fire them and hire new engineers when business picks up again. Especially if you have a list of poor performers, "problem individuals", and those whose retirement package is about to vest. Layoffs can be an excellent way to cull such especially costly individuals without the same level of legal scrutiny risked by individual firings.

      --
      --- Most topics have many sides worth arguing, allow me to take one opposite you.
    7. Re: Two months ago "Couldn't keep up with demand" by babydog · · Score: 1

      There have been articles in the last several months about a slowdown in 777 aircraft sales. 747-8 sales never did really happen. 747 (and A380) freighter sales never happened as expected. Maybe redesigns are getting postponed? I'm told 757s are popular because there is no real replacement. Trump and the Air Force One order: I don't think anything has changed despite Trump's bluster. It is still a proposed purchase of 2 747-8s customized to meet Air Force requirements. They will be very expensive.

  4. Why would a Business man be Patriotic? by Anonymous Coward · · Score: 1, Insightful

    The Art of the Deal is about "self interest" not what aligns with everyone else. Wny would anyone think he was running for office out of the goodness of his heart? The "Art" is in exploiting people dim wits.

  5. About those claims of a shortage of engineers by Anonymous Coward · · Score: 2, Interesting

    There has never been, and never will be, a shortage of engineers.

    There is, however, a surplus of greed and stupidity amongst the 1% that means people with decades of experience and education are forced to run around like dogs on the street looking for work. Meanwhile none of the 'shareholder activists' and C level executives will ever feel even the slightest ounce of pain, regardless of how many failures they create.

    There was no purpose in winning the cold war - we have replicated the worst parts of the Soviet Union all by ourselves.

    1. Re:About those claims of a shortage of engineers by Jzanu · · Score: 2

      Winning the cold war? Maybe part 1 by default, but part 2 since 1990 was lost as soon as the West failed to contain Russia from creating the war in nagorno karabakh and profiteering by supplying weapons to both sides simultaneously.

  6. It's for a stock bump by rsilvergun · · Score: 2

    They took a hit when Trump announced "Cancel Order!" to their Air Force one bid. Our entire economy is built around short term stock bumps because most CEO pay is in bonuses and stock options (so that they don't have to pay income tax on it).

    --
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    1. Re:It's for a stock bump by geekmux · · Score: 1

      They took a hit when Trump announced "Cancel Order!" to their Air Force one bid. Our entire economy is built around short term stock bumps because most CEO pay is in bonuses and stock options (so that they don't have to pay income tax on it).

      Boy, it sure is a good thing that their projects don't last long, and they never have to think about the impact of short-sighted stupid decisions in the long run. I mean, how long do you really need an engineer to design an airplane? Surely no longer than a fiscal quarters worth of stock bumps, right?

      /sarcasm

    2. Re:It's for a stock bump by magusxxx · · Score: 1

      And I think was done so Boeing would be ripe for a takeover. Then after that occurred our Fuh...I mean Mein President would say they're a great company and the U.S. government fully supports their product.

      --
      Care killed the cat, but satisfaction brought it back.
  7. Re:I thought Trump was supposed to take care of th by losfromla · · Score: 1

    exactly!

    --
    Only I can judge you.
  8. Re:I thought Trump was supposed to take care of th by Anonymous Coward · · Score: 1

    Don't blame Trump. Boeing has had some problems with quality recently.

    In 2005, FIA (run by Boeing) was partly canceled. The New York Times called it "perhaps the most spectacular and expensive failure in the 50-year history of American spy satellite projects." From space.com, "But Boeing quickly ran into troubles on the highly ambitious and complex FIA program, which fell years behind schedule and overran its budget by billions of dollars."

    In 2011, the SBI Net program was canceled. "It was originally envisioned to stretch the 1,969-mile border between the U.S. and Mexico but initial phases of the $1 billion project took longer than anticipated to complete and covered just a small portion, 53 miles, since the project began."

    According to Wikipedia, the Joint Tactical Radio System (JRTS) project has had major problems. "The JTRS program was beset by delays and cost overruns, particularly Ground Mobile Radios (GMR), run by Boeing."

    The Dreamliner had major problems, including fires. From Wikipedia, "The FAA issued a directive in January 2013 that grounded all 787s in the US and other civil aviation authorities followed suit. After Boeing completed tests on a revised battery design, the FAA approved the revised design and lifted the grounding in April 2013; the 787 returned to passenger service later that month."

    This usatoday article, titled "Some of Boeing's programs have problems", lists other problems with Boeing. For example, "V-22 Osprey. The tilt-rotor aircraft, made in partnership with Bell Helicopter, is under congressional scrutiny because of concerns about its high cost of operation, reliability and safety." and "Joint Tactical Radio System Cluster 1. Boeing's management of the project for the military was so bad it received a stop-work order from the Defense Department. Eventually, the program was restructured rather than canceled but with Boeing in a diminished role."

    I wonder if some managers are looking at these problems, and deciding that Boeing isn't the best company from which to order planes and services. That would hurt Boeing's sales.

  9. Re:As a former Boeing defense engineer, I wonder w by Anonymous Coward · · Score: 1

    Boeing is a terrible company

    I was laid off while working for Boeing Defense and it's a comparatively good company. The third time was the charm for me and I saw them lay off both younger and older - the average age in some areas is probably somewhere in the 40's. They gave us two months notice. I was older which meant a hefty severance and early retirement including medical. Plus a 401K. My friends in other aerospace and my brief experience with a smaller firm didn't fare as well. Boeing's a yuge company and if assigning you a BEMS ID makes their life easier so the fuck what. Sure there's political crap going on and they favor keeping useless crony managers over engineers, but you'll see that everywhere.

  10. Blighted morons? by zerofoo · · Score: 1, Insightful

    Did you believe Bernie when he said that he would make healthcare and college education free?

    Econ 101 - there is no such thing as a free lunch.

    I partially wanted to see Bernie win - just so I could see him squirm when it came time to deliver on all the free stuff he promised.

    1. Re:Blighted morons? by losfromla · · Score: 2

      I did, and he could. It wouldn't take much. Take the farm subsidies, move them over to education. Cut the military budget by 25% and move it to education. Remove the loan programs and just pay colleges a flat fee per student. It's not that difficult, many other countries have free college for their students, some even pay a stipend so the student can eat and have a place to live. Of course, those are first world countries so maybe the comparison isn't fair. ;-)

      OTOH, NY just made college free so what do you make of that?

      I guess I'd enjoy tRumpf squirm too if he had the brainpower to realize how much of a dumb fat-fuck he is. I do wish he'd be competent enough to get rid of free-trade and implement border/VAT taxes but he'll go with the flow in order to make money for him and his shitty kids and businesses. He is literally the ultimate sell-out.

      --
      Only I can judge you.
    2. Re:Blighted morons? by TheRaven64 · · Score: 2

      Econ 101 - there is no such thing as a free lunch.

      You might want to study a little bit more economics and realise that economics is not a zero-sum game and that there is such a thing as an investment with a positive return. Then learn about incentive systems.

      --
      I am TheRaven on Soylent News
    3. Re: Blighted morons? by Anonymous Coward · · Score: 1

      Trolls gotta troll. They can't discuss econ 102/201 because they failed the prerequisite.

  11. H-1B aeronautical engineers coming soon by zerofoo · · Score: 1

    I wonder if the H-1B body shops will shift from computer services to aeronautical engineering soon.

  12. No need for many engineers by rfengr · · Score: 1

    I would assume the 787 design is essentially finished, which I assume means a big reduction in engineering. Is there anything else in the pipeline, or has commercial aircraft design become too expensive? Hire & fire is nothing new in aerospace.

    1. Re:No need for many engineers by acoustix · · Score: 1

      I would assume the 787 design is essentially finished, which I assume means a big reduction in engineering. Is there anything else in the pipeline, or has commercial aircraft design become too expensive? Hire & fire is nothing new in aerospace.

      I thought the same thing. Wouldn't a slow sales period mean that you need less manufacturing workers?

      --
      "A plan fiendishly clever in its intricacies"- Homer Simpson
  13. Re:He did by gravewax · · Score: 1

    most of the world is not under austerity at all and if anything as a whole the well of middle class has exploded in size but they aren't doing business with Boeing. Airbus has had record profits and orders by comparison.

  14. In other news... by JustNiz · · Score: 2

    In other news... Indian software contract houses today announced new billion dollar contract with Boeing,

    Staying with aviation news: The FAA today announced a new initiative to "update" engineering standards covering aircraft manufacture. a spokes person was quoted as saying "certain FAA standards, especially those covering software quality/safety in aircraft have been unnecessarily complex and burdensome to the aircraft industry for years".

    1. Re:In other news... by stefski66 · · Score: 1

      Any link on this news? Couldn't find anything related to that on faa.gov...

    2. Re:In other news... by JustNiz · · Score: 1

      sigh.

  15. Re:Can I change my major to literature? by Anonymous Coward · · Score: 2, Funny

    That's akin to looking up at 3" of water above your head and deciding the best course of action to take a breath of air is to swim *downward*.

  16. They can just hire them back by rsilvergun · · Score: 1

    after they get their bump. It'll cost more because they'll pay hiring bonuses but that's about it.

    The problem is our entire economy is being run by a well connected good 'ole boys network with very actual smarts. Things would go a lot smoother if we acknowledged our ruling class and took steps to reign them in but as things stand we just pretend they don't exist.

    --
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  17. Electronics Ban by ghoul · · Score: 4, Insightful

    Nope we are beginning to see the effect of Trump's electronics ban on Gulf airlines. They are moving orders away from Boeing to Airbus

    --
    **Life is too short to be serious**
    1. Re:Electronics Ban by mjwx · · Score: 1

      Nope we are beginning to see the effect of Trump's electronics ban on Gulf airlines. They are moving orders away from Boeing to Airbus

      As much as Trump deserves a good bashing, what we're seeing started long before him. Boeing only sell two aircraft families at the moment, the medium range 737 NG family and the long range 787. Both of which face fierce competition from the Airbus A320 family as well as the A330 and now the A350. The issues that airlines have had with the B787 have hurt it now the A350 is operations.

      Also their withdrawal from the super heavy market has completely given that market to Airbus and their A380. Orders for B747's have practically ceased and Boeing's attempts to compete by doing a life cycle update of the 747 were laughable (same as Airbuses attempts to do the same with the A330 when the 787 came out... just to show I'm not biased).

      So Boeing are receiving reduced orders due to competition and the lack of a 747 replacement.

      However you're quiet right that Airbus is going to see increased options due to the Trumps attacks on the Gulf airlines, but that will take time to materialise.

      --
      Calling someone a "hater" only means you can not rationally rebut their argument.
  18. Is this news? by Errol+backfiring · · Score: 4, Interesting

    I have studied aeronautics and I was told that U.S. aeronautical engineers were called "gypsies". All the U.S. aircraft were designed by the same team of engineers, who were hired for a design job, fired afterwards and therefore went from factory to factory to be able to make a living. For us European students, it was totally absurd that you would have to spend a large part of your life studying and still end up as a dragged-around gypsy.

    --
    Nae king! Nae laird! Nae yurrupiean pressedent! We willna be fooled again!
    1. Re:Is this news? by Anonymous Coward · · Score: 1

      Yes. I work in the industry and while I haven't heard gypsies, migrant Aluminium picker is common (a play on migrant farm workers). And while everyone here obsesses over the negatives, I have seen many positives come out of this, primarily the focus on keeping skills current and the interchange of new ideas.

      I have known far to many 'lifers' who've worked at one company for 35 and know exactly what check mark goes where, show up at 8am, leave at 5pm and take a one hour break from 12pm until 1pm. But ask them anything outside of their one form filling-out specialty and you get nothing. And it's the complete end of world if they ever get laid off unless you can find another company with the exact same bureaucracy and need for that particular cog in the machine.

    2. Re:Is this news? by Anonymous Coward · · Score: 1

      So what? People don't live to work. Those who have routine jobs do them best by using routines. They live outside of the office.

    3. Re:Is this news? by Anonymous Coward · · Score: 1

      Years ago, companies used to have big R&D departments where these "lifers" could always try new ideas. Lately, most companies don't even have R&D departments anymore. Now they see anyone even attempting R&D, they call them lazy for reading a book.

    4. Re:Is this news? by thegarbz · · Score: 2

      For us European students, it was totally absurd that you would have to spend a large part of your life studying and still end up as a dragged-around gypsy.

      For European students it is probably also absurd that you make ridiculous amounts of money after your study doing it. It is a type of work compensated accordingly. One of my co-students and I went separate ways after uni. He went full gypsy. I stayed in a big city. 5 years later he bought a house in cash, I had the down-payment for the loan.

    5. Re:Is this news? by dyslexicbunny · · Score: 1

      I figure it'll get worse as Boeing and Airbus reduce the number of unique vehicles in the lines going forward. Airbus is down to only manufacturing the A320, A330, and A380. And Boeing was planning on having three clean sheet designs (Yellowstone) - the 787, a new 737/757/767 variant (pushed back due to the A320 NEO as they developed the 737 MAX to compete), and a 777/747 replacement (likely the 777X). They'll each have variants but they'll probably just be variation in fuselage length for variable passenger capacity to keep costs down with a common wing.

      Not sure how either companies will want to do things since you need that engineering knowledge on the next aircraft and if you're going through that process less frequently, you'll have fewer seasoned folks that know what they're doing. Oh well.

  19. Re:No wonder, with all the Dreamliner problems by petermgreen · · Score: 1

    The Dreamliner's batteries continue to pose a problem,

    Do you have a source for that claim? They were an issue a few years back but i'm not seeing anything recent.

    --
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  20. Retrain as a coal miner by naughtynaughty · · Score: 1

    MAGA

  21. Re:He did by OhPlz · · Score: 1

    Right. That was why the stock market hit a record high after he was elected. The market isn't confident.

  22. Re: I thought Trump was supposed to take care of t by Ol+Olsoc · · Score: 1

    Modding down a post that was filled with verifiable facts shows the depths of depravity that some have fallen into.

    --
    The shepherds did so well protecting the flock that the sheep no longer believed that wolves existed.