Boeing Announces Layoffs

N E W   Y O R K, Sept. 18 -- The Boeing Company announced that it will lay off 20 percent of its workforce — up to 30,000 employees — in wake of last week's terror attacks.

The layoffs at Boeing are the latest in an industry hit hard by the hijacking and crashing of four U.S. passenger jets on Sept. 11. Continental Airlines, US Airways and other airlines also have announced layoffs.

In a statement released tonight, the Seattle-based Boeing said the layoffs were in response to last week's terrorist attacks as well as the anticipated drop in business for the rest of the year and in 2002. The airplane manufacturer said it will lay off 20,000 to 30,000 people by the end of 2002.

"We profoundly regret that these actions will impact the lives of so many of our highly valued employees," said Alan Mulally, president and CEO of Boeing Commercial Airplanes. "However, it is critical that we take these necessary steps now to size the commercial airplanes business to support the difficult and uncertain environment faced by our airline customers."

Boeing said its deliveries, which were anticipated to reach 538 by the end of this year, could now be as low as 500. Its deliveries for 2002, initially expected to exceed 500 in 2002, may reach the low 400s.

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Boeing's announcement came as troubled U.S. airliners came one step closer to a potential federal bailout today, as top industry officials met at the White House to carve out a multibillion-dollar aid package to take to Capitol Hill.

Transportation Secretary Norman Mineta, following the meeting today, said the industry may be losing as much as $300 million a day. Industry officials said they were seeking aid in the neighborhood of $24 billion.

Delta Air Lines head Leo Mullin argued the move was necessary to ensure the industry does not become the war on terrorism's first major economic casualty. Revenue was lost entirely in three of the four days last week following Tuesday's terrorists attacks, explained Mullin, and in coming days revenue would be no more than 40 percent to 50 percent of normal.