Boeing's Production Cuts to Hit 350 UK Suppliers Hardest

Boeing's plans to scale back production and cut up to 48,000 jobs worldwide are set to have a devastating impact on its 350 UK suppliers. The US-based company's decision to reduce production of several commercial jets, including the 757, 767, and 777, is expected to lead to a significant number of job losses among British companies that rely heavily on Boeing for orders. With 70 per cent of Boeing's European suppliers being British, the effects of the production cuts will be felt far beyond Boeing's direct UK operations, which are relatively small.

Key Takeaways:

• Boeing plans to reduce production of several commercial jets, including the 757, 767, and 777, citing the Asian crisis as the reason.
• The company aims to cut up to 48,000 jobs worldwide, with 38,000 of those job losses occurring by the end of next year and a further 10,000 over the following 12 months.
• The cuts would amount to a 20 per cent reduction in Boeing's workforce, from 238,000 in June to around 190,000.
• Many British suppliers, including British Aerospace and Rolls-Royce, are unlikely to escape the impact of the production cuts, with job losses and potential redundancies looming.
• Smiths Industries, which makes electrical controls for Boeing, has already cut back its operations due to forecasted downturn in demand.
• Boeing will increase production on its new-generation 737s, but this will be reduced from 24 planes a month to 21 a month in late 2000.

Statistics:

• 70 per cent of Boeing's European suppliers are British (Source: Boeing)
• 350 UK suppliers are expected to be impacted by Boeing's production cuts (Source: Original article)
• 48,000 job losses worldwide are planned for Boeing, with 38,000 of those losses occurring by the end of next year (Source: Boeing)
• 238,000 was Boeing's workforce in June (Source: Boeing)
• 190,000 is the expected workforce size after the planned job cuts (20 per cent reduction from 238,000)

Sources:

• Boeing
• Original article