Boeing plans to continue cutting jobs from its commercial jet business as customers, typically airlines and governments, seek to acquire more affordable jets. The firm will slice 4,500 jobs from its roster, The Wall Street Journal said Wednesday.
Oddly, Boeing isn’t seeing a decline in the number of planes it’s selling, which one might assume would lead to job cuts. Instead, The Wall Street Journal said that the issue comes from Boeing’s rival, Airbus, which is eating up market share.
This is despite Boeing’s ability to receive “record orders” for its latest aircraft. Unfortunately, those orders come with lower profits as the price of each airplane sold to customers declines. As such, Boeing needs to cut costs and, often, that means slimming down its employee base.
The Wall Street Journal said the new job cuts will affect two sections of Boeing, including its commercial and flight testing units, with a majority of the employees “based in Washington state.”