Boeing to cut 10,000 jobs in 2009

Boeing Co., world’s second largest airplane maker announced 10,000 job cuts or around 6 present of its workforce in 2009. This includes the 4,500 job cuts the company announced on January 9 this year.

Hit by the recent global financial meltdown Boeing Co. suffered a major fourth quarter loss of $ 56m. Reports suggest that the company presently on the back foot in the global market also holds the costly redesigning of its 747 freighter aircraft and the 58 days strike of 16% of Boeing’s work staff (including 27000 machinists) on September 6, 2008 responsible for the recent setback. This wounded the company with a $1.8 million loss for the year. The much anticipated Boeing 787 Dreamliner, the world’s first large commercial airplane made mostly from carbon-fiber composites had to undergo a delay in its delivery because of the strike.

Boeing also delayed deliveries of 747-8 cargo and passenger jets, and deliveries of 737s, 747s, 767s and 777s.

The recent downfall in the travel demand and the cancellation and deferral of 6 and 110 airplanes also contribute to the financial drop in the company. Boeing said that 58 customers had placed 895 orders for 787s excluding a recent cancellation of 15 planes which were to be delivered later next decade.

The Chicago based company has a target of 480-485 plane deliveries in 2009, lesser than its July estimate of 500 to 505 plane deliveries. In 2008, plane deliveries were 375, lower than its plans of delivering 475 planes.

However Chief Executive Officer Jim McNerney stays optimistic, “We can and must prepare for the continued market uncertainty,” he said. “Despite this challenging environment, our backlog is holding.”

With the waning market conditions in the present era the plane maker underwent a fourth quarter loss of 8 cents a share, compared with net income of $1.03 billion, or $1.36, a year earlier. The net income for 2008 for the company was reported net income of $2.7 billion, or $3.71 per share, down 34 percent from 2007.

Boeing rose 2 cents to $43.24 at 4 p.m. in New York Stock Exchange composite trading. However the stock has declined a dreadful 44 percent in the past 12 months.

In the last 3 months only 50 planes were shipped as compare to a plan of having 70 shipped in the last quarter. Fourth-quarter revenue fell 27 percent to $12.68 billion.

Looking ahead, Boeing expects per-share earnings of $5.05 to $5.35 for 2009, short of the $5.68 forecast by analysts.

The fight back of various companies of the United States was also fueled by the newly elected President Barack Obama’s plan to create as many as 4 million jobs to boost the economy.