November 7, 2012

Obama wins — cue the layoffs [Darleen Click]

I’m sure this is just a coincidence … unexpectedly

Boeing announced a major restructuring of its defense division on Wednesday that will cut 30 percent of management jobs from 2010 levels, close facilities in California and consolidate several business units to cut costs.

The company [BA 70.11 -1.47 (-2.05%) ] told employees about the changes on Wednesday, in a memo obtained by Reuters and confirmed by Boeing.

Boeing, the Pentagon’s second-largest supplier, said the changes were the latest step in an affordability drive that has already reduced the company’s costs by $2.2 billion since 2010, according to the memo.

h/t Twitchy

Posted by Darleen @ 10:51pm
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Comments (25)

  1. Weren’t these the layoffs we already knew about, but the companies were told to not make any announcements, and since that broke the law, the government would pay the fines and legal fees?

  2. Yes. They are the ones they violated their own WARN Act over.

  3. Well, laws are for the little people, really.

  4. Serr8d, Ernst is looking for your link on the pot study causing schizophrenic behaviors on the “Teachable Moment’ thread.

  5. I think I’m going to use “unexpectedly” with plenty of italics and bolding when things like this keep happening.

  6. Testing:

    Unexpectedly!

  7. Just wait until the wealth taxes and pension raiding kicks in. But will they sell all that federal land? Fuck no. Borrow and tax and print but leave Uncle Sam’s shit alone.

  8. What’s yours is Uncle Sam’s, What’s mine is Uncle Sam’s and what’s Uncle Sam’s is Uncle Sam’s.

    Holy Shit! We’re all iof us in a polygamous marriage with the Government!

  9. Serr8d, Ernst is looking for your link on the pot study causing schizophrenic behaviors on the “Teachable Moment’ thread.

    There’s a few – this, this and this for example.

  10. To be fair, Boeing did cross the administration what with their trying to cut costs by building a plant in South Carolina. /s
    Also, isn’t this exactly the kind of thing Californians want? They don’t want companies actually going about the icky business of building things in their state, at least as far as I can tell from their environmental and tax policies. What’s a few more people on the dole? It isn’t like they have to follow work to welfare rules anymore and the Fed will be by any minute now to bail out the state pension plan.

  11. “an affordability drive”

  12. California.

    Unaffordable.

  13. everybody is laying off, not just defense. but defense is about to take it in the teeth.

  14. BTW Lockheed has been reorganizing and eliminating redundancy in management for the last 15 years or so. It’s nothing new, and it doesn’t have much to do with what the government is doing right now vis a vis defense contracting.

    There was a large reduction in middle management sometime within the last year, here, that you didn’t hear much about because it was voluntary layoffs targeted at certain salary grades that were middle management. Were those people laid off? Arguably.

    We’ve just had another round of voluntary layoffs, but until we get some action from the customer side that reflects something like termination of existing contracts, what’s happening here is just same-same. And we have not heard any such thing, yet. Hell, we just made some decisions to hire new people because the hiring freeze (put in place in anticipation of sequestration) coupled with attrition has made it very difficult to service existing contracts and IRAD commitments.

    I am expecting bad things to happen, but there’s not much more I can do to prepare for them, and there’s nothing more I can do in the way of prevention.

  15. Actually, most of LM’s problems at present (besides having unnecessarily redundant management left over from the merger) is aging of the workforce. There are right now a LOT of older engineers in higher pay grades, which is going to make life interesting when they (we) retire and start drawing pension (which a lot of us are still eligible for, even though LM stopped offering pension to new employees several years ago), and also makes life interesting when bidding on and servicing contracts. If you look at age demographics in the LM workforce, there are lots of over 50 workers.

  16. Wait until all of the Obamacare taxes kick in & the bush tax cuts expire. It’s hard to have pity for people who voted for Obama and will now be stung by his policies. Guess they’re just expecting some kind of handout to tide them over.

  17. It will also be interesting to see what happens to the monthly jobs numbers as the layoffs begin and businesses that had been on the fence choose either to not hire or start shifting to part-time employment. Probably going to “shaped” from here on out, not that it matters. The MSM will be working on Obama’s legacy instead of his re-election.

  18. So let’s see, of course Obama has to let the Bush tax cuts expire, because that’s what his base swoons over, and then there’s the debt ceiling fight, which I’m sure the GOP will cave over, but the international community will start making other investment plans…

    The left got what again? A paper tiger? Yeah, have fun with that.

  19. BUSH’S FAULT!

  20. It’s not layoff notices, but it’s related. At the gas stations near my house in St. Paul, prices were $3.14 on Monday, and $3.35 yesterday. Heck of a coincidence.

  21. Something possessed me to fill the tank on my truck Tuesday right after we voted.

    That’s probably what drove up the prices.

  22. @Slart: This is why I keep thinking I should’ve gone ME or EE instead of bioengineering.

    All my peers with degrees in mechanical or computer or electrical engineering had job offers from defense companies right out the gate.

  23. re: engineering and defense

    engineering is suffering from the same problem everywhere — a very aging workforce, and yet with all the hiring freezes they can’t hire the younger ppl to train under them. We’re facing that at work right now – i’m the youngest engineer here, and they are desperately training me to pick up the slack when our manager retires in 2 months. He’s been here 34 years and they never hired enough younger engineers to replace the retirees. Our plant is dying, and the situation is bad, but we are still on a hiring hold.

    I’m also dependent on child support from an ex who works in defense engineering several states away. He already got laid off from BAE 2 years ago and went back to the government (must be nice), and now I’m wondering how likely it is that we’ll be losing support from daddy.

    the whole thing feels up in the air. It’s an ugly scary time.

  24. missfixit: that really seriously sucks.

    My mistake was pursuing bioengineering. Most employers I’ve looked at (and I’ve done quite a bit of looking over the past several years) either want 2-3 years of experience in the field or a secondary degree, even for “entry level” positions.

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