Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

11/8/2012 (1 year ago)

Catholic Online (www.catholic.org)

Pentagon's second-largest supplier takes steps to save billions

Boeing has announced a major restructuring of its defense division. Along with the announcement came news that the firm will cut 30 percent of management jobs from 2010 levels. The company will also close facilities in California and consolidate several business units to cut costs.

U.S. arms suppliers are currently under pressure to cut costs and preserve profit margins amid dwindling defense spending in the U.S.

U.S. arms suppliers are currently under pressure to cut costs and preserve profit margins amid dwindling defense spending in the U.S.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

11/8/2012 (1 year ago)

Published in Business & Economics

Keywords: Boeing, airline, Pentagon, budget, management


LOS ANGELES, CA (Catholic Online) - Boeing employees were made aware about the changes this week in a memo obtained by Reuters, and since confirmed by Boeing.

The Pentagon's second-largest supplier, Boeing said the changes were the latest step in an affordability drive. The action has slashed costs by $2.2 billion since 2010, according to the memo.

U.S. arms suppliers are currently under pressure to cut costs and preserve profit margins amid dwindling defense spending in the U.S.

Chief Executive of Boeing Defense Dennis Muilenburg said in a message that the company aimed to cut costs by an additional $1.6 billion from 2013 through 2015.

"We are raising the bar higher because our market challenges and opportunities require it, and our customers' needs demand it," Muilenburg said.

Savings would reach $4 billion, Muilenburg said making the company more viable and better able to deal with a tougher marketplace.

Boeing will also cut the number of executive jobs an additional 10 percent by the end of 2012, bringing overall cuts in its executive team to 30 percent for the past two years. The move could result in a 10 percent cut in management costs.

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 January 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."

The company did not give details on how its employees would be phased out, saying many employees will be repurposed into Boeing's growing commercial business.

A company spokesman declined to say how many jobs had already been cut from the 2010 level.

Rival Lockheed Martin has reduced its management ranks by about 25 percent in recent years after announcing a voluntary buyout.

"Many investors focus on Boeing's commercial operations," Defense consultant Loren Thompson said, referring to the jet-making business.

"But defense provides 40 percent of the company's revenues and returns, so controlling costs there is crucial to maintaining the company's overall profitability."

.

---


Pope Francis: end world hunger through 'Prayer and Action'


2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for August 2014
Refugees:
That refugees, forced by violence to abandon their homes, may find a generous welcome and the protection of their rights.
Oceania: That Christians in Oceania may joyfully announce the faith to all the people of that region.



Comments


More Business & Economics

Here comes a boom! $7 trillion in untapped funds to flood global market Watch

Image of A report suggests that corporations and equity firms hold nearly $7 trillion in cash reserves that could bolster the world's economy.

By Catholic Online (NEWS CONSORTIUM)

A new boost to the global economic recovery may happen soon, as corporate giants and private equity firms prepare to tap into cash reserves of $7 trillion, stored since the current financial crisis began back in 2008. LOS ANGELES, CA (Catholic Online) - Investors ... continue reading


OBAMA PARTIES AS ROME BURNS: U.S. wages down by 23 percent - while president takes a vacation Watch

Image of The timing of Obama's swank vacation has even the president's supporters worried.

By Catholic Online (NEWS CONSORTIUM)

Lots of negative news to go around - Ebola seems to be spreading worldwide, Islamic State is increasing its stranglehold on Iraq, a much beloved comedian and screen actor is found dead at home, an apparent suicide - U.S. President Barack Obama is in Martha's ... continue reading


Religious orders NEED to understand economics Watch

Image of A letter from two high-ranking Catholic officials requests that religious orders gain a better understanding of finance and economics.

By Catholic Online (NEWS CONSORTIUM)

In a letter addressed to members of religious communities, Vatican officials requested that these groups should not be ignorant of economic realities connected to community life and a mission of serving the world in the name of the Church. LOS ANGELES, CA ... continue reading


THANKS, BARACK! Federal debt up $7 TRILLION under your watch. Watch

Image of By the close of business on July 31, 2014, it had risen to $17,687,136,723,410.59, up $7,060,259,674,497.51 since Obama first inauguration day.

By Catholic Online (NEWS CONSORTIUM)

Thanks, Barack! The total federal debt of the U.S. government has increased more than $7 trillion during the slightly more than five and a half years Barack Obama has been president. That's more than the debt increased under all U.S. presidents from George ... continue reading


Live Catholic - Shop Catholic - Guess who now accepts checks?

Image of Catholic Shopping .com now accepts checks via Dwolla!

By Catholic Online (NEWS CONSORTIUM)

Guess who now accepts checks? Catholic Shopping .com does! This new option now makes it easier for you to control how you pay for the things you like. LOS ANGELES, CA (Catholic Online) - Catholic Shopping .com is now accepting checks via the online processor, Dwolla. ... continue reading


Unemployment in the U.S. - never went away! Many still without work Watch

Image of The number of Americans not in the labor force dropped only slightly in July, down 119,000 from the 92,120,000 Americans not in the labor force in June.

By Catholic Online (NEWS CONSORTIUM)

It may have fallen off the radar of many news outlets - but joblessness is still a BIG problem here in the United States. Since President Obama took office in January 2009, 11.4 million Americans 16 years and older have left the workforce, according to data ... continue reading


INDEBTEDNESS: One in three U.S. adults have 'debt in collections' Watch

Image of One in three American adults are so far behind in personal debt that many of their accounts have been referred to collections.

By Catholic Online (NEWS CONSORTIUM)

Some call it the American way, and it's become a most uncomfortable fact of life for many Americans. Personal debt is at an all-time high, and at least one in three Americans, 77 million people, have had their debt referred to collection agencies as a result. ... continue reading


LUMP OF COAL - LITERALLY! Coal companies pushed to brink of insolvency by Obama policies Watch

Image of The very fuel that fed the Industrial Revolution and powered U.S. growth for much of the past century, the coal industry finds itself on the brink of insolvency, with many companies going out of business.

By Catholic Online (NEWS CONSORTIUM)

Dealing with cheap natural gas and tighter regulation, the U.S. coal industry has fallen on hard times. The very fuel that fed the Industrial Revolution and powered U.S. growth for much of the past century, the coal industry finds itself on the brink of ... continue reading


The poor getting power in U.S. - typical household is now worth a third less Watch

Image of The old saw goes that when only a few people are winning and more than half the population is losing, surely something is amiss.

By Catholic Online (NEWS CONSORTIUM)

The rich get richer - and the poor have children. But seriously, folks, the poor is getting even poorer in the United States. Recovery from the last big recession in 2007, hasn't really taken off as of yet. Recent studies show that the average American ... continue reading


HAIL BRITANIA! Britain declared fastest growing economy in developed world Watch

Image of Britain is now

By CNA/EWTN News

There will always be an England, as the old song goes. While the United Kingdom has experienced highs and lows, it's always recovered - and prospered. This was born out by the recent news that Britain will be the best performing major economy in the developed ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Ezekiel 37:1-14
1 The hand of Yahweh was on me; he carried me away by ... Read More

Psalm, Psalms 107:2-3, 4-5, 6-7, 8-9
2 So let them say whom Yahweh redeemed, whom he ... Read More

Gospel, Matthew 22:34-40
34 But when the Pharisees heard that he had silenced ... Read More

Saint of the Day

Saint of the Day for August 22nd, 2014 Image

St. Andrew the Scot
August 22: Archdeacon and companion of St. Donatus. Andrew and his sister, ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter