Airplane manufacturer Boeing Wednesday announced it would cut about 4,500 jobs by mid-2016. The company reportedly plans to reduce its workforce in a bid to control costs.
In the commercial airplanes division, the company will lay off about 4,000 people. It will also cut about 550 jobs in the flight and lab tests division, company spokespersons were quoted as saying by Reuters. Spokesperson Doug Alder said the job cuts, which would include managers and hundreds of executives, will be done through voluntary layoffs.
"While there is no employment reduction target, the more we can control costs as a whole, the less impact there will be to employment," Alder added. As of Dec. 31, 2015, the company had a total of 161,400 employees, Reuters added. The commercial and defence aircraft manufacturer also planned to cut 10 percent of its 5,700 test and evaluation staff, which conducts flights and lab tests, a spokesperson was quoted as saying by the news agency.
According to reports last month, the company was reportedly considering offering voluntary layoffs to its professional engineers and technical workers. Ray Conner, the Chief Executive Officer of Boeing's air plane business, last month said the job cuts were necessary to "win the market, fund its growth, and operate as a healthy business."
The Boeing stock closed at $130.86 Tuesday, down 0.33 percent from its previous close on the New York Stock Exchange.