Boeing Revises 1995 Employment Forecast

Seattle, May 23, 1995 - Boeing announced today that it has updated its 1995 employment forecast and now anticipates reducing employment by approximately 12,000 this year -- 5,000 more than previously estimated. The new forecast results from a series of actions to reduce costs necessitated by increasing competitive pressures.

The majority of the additional 5,000 job reductions are expected to occur at Boeing plants in the Seattle area. Currently, Boeing employs approximately 113,900, down from approximately 117,300 at the beginning of the year.

"We're pursuing aggressive efforts to reduce costs so that we can maintain and expand our leadership position in the market," said Boeing Chairman Frank Shrontz. "These additional job reductions are the result of efforts to trim the size of our non-manufacturing work force and improved processes to design and build aerospace products more efficiently."

A significant portion of this year's job reductions will be the result of a one-time special retirement-incentive program that Boeing offered to employees last month.

So far, more than 6,000 of the approximate 13,000 employees eligible to take advantage of the program have declared their intention to retire. Eligible employees have until June 16 to decide whether to participate.

"The special retirement program is working essentially as we expected," Shrontz said. "It is significantly reducing the number of layoffs that would have otherwise occurred this year."

As a result of the special retirement program, Boeing organizations throughout the Seattle area are re-examining their work force requirements. The company's Employment Stabilization Board and numerous functional skill teams throughout the company are working to fill vacancies created by the special retirement program.

"We believe that our emphasis on reducing overhead costs and making process improvements will put the company in a good competitive position to take advantage of improved market opportunities in the future," Shrontz said.