Boeing reportedly cutting up to 10% of workforce

The Boeing Co. is on track to eliminate 4,000 jobs by June of this year in an attempt to remain competitive with rival Airbus.

The Seattle Times is reporting that the aerospace giant plans to cut as much as 10 per cent of its workforce in Washington state, which would amount to as many as 8,000 positions.

The company told the Times that workers were being offered a voluntary buyout package and the first jobs to go included "hundreds of executives and managers."

Boeing CEO Ray Conner announced plans for a cost-cutting push in February in a webcast to employees.

In addition to reducing jobs in its commercial aircraft division, Conner said Boeing planned to squeeze supplier costs, increase productivity, shrink inventory and cut travel, overtime, services and contractor expenses.

If none of those measures work, employees were warned that involuntary layoffs might occur by yearend.

Boeing is concerned that Airbus is undercutting it on price in commercial aircraft sales and said it may have to devote its capital to development of a new mid-sized aircraft to compete with Airbus's A321neo.

It also plans to match Airbus by revving up production of the 737 to 57 jets per month and production of the Dreamliner to 14 jets per month.

That plan could interfere with plans to cut the workforce, as it may be difficult to boost production levels when employment is being trimmed.