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Boeing Cuts Big Loss for Seattle Smaller Gains for OKC St Louis

Boeing Cuts: Big Loss for Seattle, Smaller Gains for OKC, St. Louis

Sept. 30, 2014
Boeing announces it plans to shift 1,400 jobs from its commercial hub in the Seattle area to Oklahoma City and St. Louis, and to eliminate 600 additional jobs.

Reacting to continued U.S. defense spending cuts, Boeing (IW 500/13) announced last night it plans to shift 1,400 jobs from its commercial hub in the Seattle area to Oklahoma City and St. Louis—and to eliminate 600 additional jobs.

Do the math: That's a 2,000-job hit that Boeing's Seattle-area operations will take over the next three years.

Here is Bloomberg's report on Boeing's announcement; here is the Wall Street Journal's; and here is the Seattle Times'.

According to the above-linked Seattle Times report:

"Some workers with critical skills will be offered relocation to Oklahoma City, Okla., and St. Louis, Mo. Others may find local jobs at Boeing's commercial jet unit. The number of layoffs won't be known until Boeing finds out how many people relocate, transfer or choose to leave.

"The jet maker currently employs a total of about 5,200 people in defense work in the region, so the moves will cut deeply into that total."

The Society of Professional Engineering Employees in Aerospace released a statement denouncing Boeing's "snub," acerbically calling it the company's "latest 'Thank You' for Washington's $8.7 billion tax break."

"The silence from Olympia is deafening," said Ray Goforth, SPEEA's executive director. "Why are Washington taxpayers subsidizing Boeing to move thousands of jobs out of state? Every state except Washington that offered Boeing tax breaks for the 777X program tied jobs to the legislation. Now, we have taxpayers subsidizing the movement of good engineering, technical and machinist jobs out of our state."

About the Author

Pete Fehrenbach | Pete Fehrenbach, Associate Editor

Focus:  Workforce  |  Chemical & Energy Industries  |  IW Manufacturing Hall of Fame

Follow Pete on Twitter: @PFehrenbachIW

Associate editor Pete Fehrenbach covers strategies and best practices in manufacturing workforce, delivering information about compensation strategies, education and training, employee engagement and retention, and teamwork. He writes a blog about workforce issue called Team Play.

Pete also provides news and analysis about successful companies in the chemical and energy industries, including oil and gas, renewable and alternative.

In addition, Pete coordinates the IndustryWeek Manufacturing Hall of Fame, IW’s annual tribute to the most influential executives and thought leaders in U.S. manufacturing history.

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