I can't for the life of me understand why the stock market is getting so excited. I guess its just a bear market rally before it starts heading downhill again. Here go 12,000 more VERY HIGH paying jobs.

Friday October 12, 4:27 pm Eastern Time Boeing to Cut 12,000 Jobs by Dec. 14 By Chris Stetkiewicz

SEATTLE (Reuters) - Hurt by slumping commercial jet orders, Boeing Co. (NYSE:BA - news) on Friday began chopping its payroll, saying 12,000 workers would be gone by mid-December in the first wave of cuts that could reach 30,000 by the end of 2002.

Updating a job cut plan unveiled eight days after hijackers crashed four Boeing-built jets on Sept. 11, the company said it would trim 10,500 jobs in its world-leading commercial jet unit and another 1,500 jobs from its shared-services unit by Dec. 14.

Chicago-based Boeing acted swiftly to cut production and costs in its Seattle jetliner unit after its airline customers warned of potential bankruptcies following the attacks which destroyed New York's World Trade Center, damaged the Pentagon and left more than 5,000 people dead or missing.

Several airlines have since failed and the U.S. government has offered $15 billion in emergency aid after carriers slashed service and laid off tens of thousands as travel demand dwindled.

About 9,000 Boeing employees will receive 60-day layoff notices on Friday and another 3,000 jobs will be cut through attrition, retirement and non-renewal of contract employees, Boeing spokesman Tom Ryan said.

``It's an unfortunate situation, but we have to go forward. There was no overnight fix to this problem,'' Ryan said.

The proposed 30,000 job cuts represent 15 percent of Boeing's global work force of nearly 200,000 and about 30 percent of its 95,000 commercial jet jobs.

Boeing shares closed down 28 cents, or 0.8 percent, at $35.90 on the New York Stock Exchange. The Dow Jones industrial average, which includes Boeing, was down 0.7 percent.

Thus far no Boeing customers have canceled jet orders, but several have sought to delay shipments and Boeing has slashed delivery schedules, including about 40 of the 538 jets it had expected to deliver in 2001.

In the third quarter Boeing delivered 120 jets, 19 fewer than it had expected, though it shipped 29 planes in the three weeks after the Sept. 11 attacks. Boeing typically delivers more jets in the fourth quarter than any other.

For 2002, Boeing projects about 400 deliveries, down from 510 to 520 before the attacks. In 2003 the total will be lower than 400 and Boeing Chairman Phil Condit in a television interview last week acknowledged that deliveries could fall below 300 in 2003.

The company will likely provide more details on its jet business and guidance on future revenues and profits during its third-quarter earnings presentation on Oct. 18.

The job cuts detailed on Friday include 7,000 workers located near Seattle. Boeing previously announced up to 2,200 layoffs in Wichita, Kansas, where another 3,000 jobs could be cut in 2002 as the company shuts a plant converting passenger jets into freighters.

In addition, Boeing plans to cut 1,900 jobs in its parts-making unit, mostly in Washington state on Dec. 14 and more next year.

On Thursday the Society of Professional Engineering Employees in Aerospace, a union representing 25,000 Boeing engineers, said it would attempt to raise $2 million from its members to help 1,000 or so members facing layoffs.

The International Association of Machinists and Aerospace Workers (IAM) has said it expects 3,255 layoffs of Boeing employees in Washington state.

-- Guy Daley (guydaley1@netzero.net), October 12, 2001

Answers

I can't get the thing with the stock market either Guy. Weird when all we see is more job loss, skyrocketing unemployment rates and LESS spending!

-- Tess (none@now.com), October 12, 2001.