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    March 31, 2016 - 10:50am

    Boeing Co. (BA) is one of the world’s biggest manufacturers of air, space and military systems. Together with the affiliates the Company deals with engineering, development, manufacturing, sales and maintenance of commercial liners, military airplanes, satellites, antimissile defense systems as well as carries out wide-scale programs in space industry.

     

    The Company consists of the two main units:

    Boeing Commercial Airplanes (non-military production);

    Boeing Defense, Space and Security ((space defense unit dealing with armament systems, aeronautical equipment, strategic and tactical reconnaissance systems, communication systems).

     

    The activity of those units is supported by the following organizations:

    Boeing Capital Corporation (issues of projects financing);

    Shared Services Group (infrastructure support);

    Boeing Engineering, Operations & Technology (development, acquisition and implementation of innovative technologies and processes).

    As a result of many mergers and acquisitions in air space industry in the 1990s, Boeing together with its main rival –Airbus (Europe) – took the dominant position at the world aviation market. The competition between the companies is strong. Both rivals always accuse one another in getting unfair privileges and grants from the government.

    The main production facilities of the Company are located in the USA (California, Washington and Missouri states). However the Boeing employees work in 70 countries. The Company’s customers are from more than 90 countries.

    Based on sales volume, Boeing is one of the major exporters of the USA.

    Seven hours ago it was officially announced that the Company was planning to cut its headcount for 8000 within the year. This step would enable the Company to decrease the production cost of air planes to compete with the other air giant – the Airbus Company, and to reduce expenses for 1 billion a year! It means that more than 4000 persons will lose their jobs at the enterprise soon! The Company plans to reduce staff 10% of the current 80,000, but according to the chairman “There is no employment reduction target. The more we can control costs as a whole, the less impact there will be to employment."

    Based on those announcements, we should expect the shares of Boing Inc. (NYSE: BA) to decrease from the current level of  128.56$ to 123.23$ within the next week!

     

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