MASSIVE BOEING LAYOFF JOB CUT: BOEING TO FIRE 10,000 - not just 4,500

Boeing has announced that Boeing would cut 10000 jobs across its business. In an earlier announcement (NYtimes), Boeing had indicated that it would cut 4,500 jobs from only its commercial airplane unit. However the number of job layoffs has been revised to 10,000 after further indications of slowing demand - including in a possible cut in US defence budget. According to the report, the job cuts will occur mainly in areas that support productivity, and infrastructure, driven through a combination of attrition, retirements, cuts in some contracted labor, and layoffs. The planned job layoff by Boeing is about 6% of its total workforce.

Reasons for Boeing Job Lay off

Boeing has made a loss of $56 million in the quarter as compared to $1 billion profit in the same quarter in 2008. Two main reasons which contributed towards this loss was a strike by the machinists union and charges incurred by Boeing due to delay in its 747 plane.

Effect of Boeing Job Layoff on Stock Price

The above job layoff, a cost cutting exercise, has been welcomed by investors of Boeing and soon after the announcement Boeing shares were up by 2.4%. Boeing stock has lost about 50% value since its peak in mid-2008.

10,000 is a massive number! Boeing is one of the market leaders in manufacturer of aircraft and Job Cuts by Boeing also reflect the plight of the airline industry as a whole.
source: Marketwatch, BBC.