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News > International
Boeing to slash jobs
September 19, 2001: 5:44 a.m. ET

Aircraft maker to reduce payroll by 20,000-30,000 by end of 2002
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NEW YORK (CNNfn) - Boeing Co. says it will lay off between 20,000 and 30,000 workers in its commercial jet unit by the end of 2002 as a result of dwindling orders in the wake of the terrorist attack against the United States.

"We profoundly regret that these actions will impact the lives of so many of our highly valued employees," Alan Mulally, president and CEO of Boeing Commercial Airplanes, said late Tuesday. "However, it is critical that we take these necessary steps now to size the Commercial Airplanes business to support the difficult and uncertain environment faced by our airline customers."

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graphicCNNfn's Kitty Pilgrim takes a closer look at Boeing's plans to cut up to 30 percent of its workforce.
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Most of the major airlines have reduced their schedules in the past week after four commercial flights were hijacked in the attacks on New York and Washington. Three of the flights struck the World Trade Center in New York and the Pentagon near Washington; the fourth hijacked jet crashed in Pennsylvania when passengers apparently fought the hijackers.

Boeing (BA: Research, Estimates) had expected to deliver 538 aircraft in 2001. It said that number could now decline to 500 depending on airlines' ability to take delivery in the near term. For 2002, Boeing said deliveries are estimated to be in the low 400s, compared with the 510 to 520 it previously forecast.

Boeing employs about 199,000 workers.

In a hastily arranged news conference at the unit's headquarters south of Seattle, Mulally said Boeing could not yet say what impact the restructuring will have on its earnings.

Boeing shares fell $2.66 Tuesday to $33.14. graphic





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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.