Boeing CEO admits 8,000 jobs may be cut if plant closes

Condit: 8,000 jobs may go

January 26, 2001: 8:00 a.m. ET

Boeing CEO admits 8,000 jobs may be cut if plant closes
By Rod Cant CNN.com Europe business writer

DAVOS, Switzerland (CNNfn) - Boeing boss Phil Condit raised the possibility of a plant closure in an interview Friday with CNNfn, a move that could results in the loss of 8,000 jobs.

Condit, chairman and chief executive officer of the world's largest aerospace company confirmed an earlier report the company was considering shutting a factory just outside Seattle, and moving 737 and 757 production to a site in Everett, Wash.

"This is one of a number of things we're looking at," he said in an interview on the fringes of the World Economic Forum in Davos, Switzerland, adding, "we're looking at every factory."

Business Week first reported the potential closure, which the magazine said would add $1 billion to Boeing's bottom line. Condit said that whatever the decision on 737 production, the company would continue on its major drive for cost cuts.

Condit also spoke bullishly of the prospects for the firm, pointing out the strong order book for this year, "2001 is already sold," and the firm's potential to benefit from extra defense spending under the new Bush administration in the United States.

He scoffed at rival Airbus's promotion blitz on the 50 superjumbo A380 planes that have been ordered for the yet-to-be-built aircraft, pointing out that these orders were given at low prices, and Airbus will have to persuade later customers to pay more.

Some of those Airbus orders have come from Asia, but Condit told CNNfn the region would be a major contributor to Boeing's future profitability, with China offering particular potential.

Boeing and Airbus are head and shoulders above any other commercial aircraft manufacturers, and are engaged in a constant tussle for dominance of the skies.

Condit's efforts to transform Boeing seem to have struck a chord with investors; the stock rose almost 60 percent in 2000, though it has given up some 10 percent so far in 2001. Boeing (BA: Research, Estimates) stock closed Wednesday at $59.25, up more than 3 percent.