As Twitchy reported in September, the Obama administration made moves to encourage defense contractors to delay layoff announcements until after the election, offering to reimburse contractors for any legal costs incurred in not informing their affected employees. Lockheed Martin seemingly took the offer, and today, Boeing announced it would be cutting 30 percent of management positions.
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.
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.The company told employees about the changes on Wednesday, in a memo obtained by Reuters and confirmed by Boeing.
Boeing said the changes were not a response to the threat of additional, across-the-board U.S. budget cuts due to take effect on Jan. 2, or the outcome of U.S. elections, but represented another step in its continuing drive to “be more competitive while investing in technologies and people.”
Is that confetti from the victory celebration? No wait, those are pink slips.