Feb 12, 2016 10:33 PM EST

Boeing Cuts Jobs In Its Commercial Airplane Unit, Starts Off Wth Executives

Boeing officially announced Wednesday that it will be cutting jobs at its commercial airplane unit, starting off with executives and managers.

The company said that cutting jobs is due to the intense pressure to decrease costs at the same time compete with its competitor Airbus.

The intense competition between the two companies is forcing Boeing Commercial Airplanes to push through with their cost-cutting strategy.

"Boeing and Airbus are turning out planes at record rates, and plan to boost output in coming years as they work through backlogged orders that stretch out seven or eight years," Fortune reports.

However, it can be recalled that Boeing's freight industry growth slowed down since early August of 2015.

"To win in the market, fund our growth and operate as a healthy business, we are taking thoughtful steps to reduce the cost of designing and building our airplanes, part of which involves evaluating our employment levels across all of commercial airplanes," Airplanes chief, Ray Conner, announced the move in an employee webcast. "We will start reducing employment levels beginning with executives and managers first."

During the webcast, employees said that Conner mentioned that the company will also make the decision about pursuing and building a new midsize airplane "to counter Airbus' success in sales of the A321neo." This project, if pushed through, would add to the financial pressure the company is already facing as it could cost several billion dollars.

No further details were disclosed with regard to the timing or scale of the job cuts. However, it is believed that it would indeed have a significant impact across BCA.

The company has already laid off about 4,000 workers in the state of Washington. Nonetheless, the Washington state then remained the center of the company's commercial airplane operations. However, at present, the company has decided to produce record numbers of planes with fewer workers. 

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