Seattle, July 17: Boeing Co, the world's largest aircraft maker, is set to announce it will fire up to 5,000 workers from its Seattle-based commercial jet unit, sources familiar with the situation said on Wednesday. A formal announcement would come on Thursday, the sources said. Boeing spokesman Peter Conte declined to comment. "If and when we update our (employment) forecast, we, as per our practice, would strive to inform our employees first, and other key stakeholders," Conte said.

The cuts would affect employees across the jetliner unit, including factory workers, white collar employees and support staff, sources said.
The company is nearing completion of 35,000 job cuts in the jetliner unit in the wake of the September 11, 2001, hijack attacks, which slashed air travel demand and hammered airlines, which in turn have rejected or deferred hundreds of aircraft on order.

Since September 2001, Boeing's total payroll has shrunk to 159,800 from 199,000, a decline of 20 per cent. In the jetliner unit, the payroll has shrunk to 58,900 from 93,000, a reduction of 37 per cent.

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The new job cuts would reduce the current payroll by as much as 8.5 per cent.
Boeing has watched its once commanding share of the commercial jet market shrink in recent years and, if company projections prove accurate, European arch rival Airbus SAS will build more jets than Boeing for the first time in 2003.

In recent months Boeing has said it might move a proposed new wide-body jet programme, the 7E7, outside of Washington state in an effort to extract tax breaks from the state or others.

Washington has responded by offering more than $3 billion in tax incentives to secure the 1,000 or so jobs, plus potentially thousands more support and supplier jobs, the 7E7 would bring.

In addition, Kansas lawmakers have approved a $500 million bond offering to help Boeing finance 7E7 parts production at its Wichita plant. Boeing will be able to pay the interest with payroll taxes and has agreed to hire some 4,000 workers.
Bureau Report