Boeing to cut 4,500 jobs in face of jet demand turbulence

Aeroplane maker Boeing has revealed plans to cut more than 4,500 jobs by June, as it cuts cost in response to slowing demand for its jets.

The US group, which has been losing market share to French rival Airbus, said about 1,600 positions will go through voluntary redundancies while the bulk will take place through attrition at its commercial aircraft unit.

The cuts, which follow 1,200 already announced from its commercial jet unit this year, will reduce the total workforce, which stood at 161,000 at the end of 2015, by close to 3%.

“While there is no employment reduction target, the more we can control costs as a whole the less impact there will be to employment,” spokesman Doug Alder told Reuters.

Hundreds of executives and managers will be included in the cull, but the company stressed that cuts will not be made through involuntary layoffs.

Boeing, which last year saw a big fall in new orders as customers in the Middle East and Asia reined in their huge spending but still has a healthy seven-year order backlog, needs to generate a torrent of cash to recover the near-$30bn deferred costs accumulated building its 787 Dreamliner.

The company recently confirmed it was having to slash prices in order to counter increasing pressure from carriers to offer less-expensive planes.