Such a coincidence. The day after Obama’s reelection, Boeing announce a massive layoff. Remember the Obama administration asking defense contractors to disobey the WARN law and to not send out layoff notices before the election? Then to sweeten the deal, Team Obama told defense contractors the taxpayers would foot the bill for any legal actions that may arise from employees suing for not issuing layoff notices as required by law.
Boeing announced a major restructuring of its defense division on Wednesday that will cut 30 percent of management jobs from 2010 levels, close facilities in California and consolidate several business units to cut costs.
The company [BA 70.11 -1.47 (-2.05%) ] told employees about the changes on Wednesday, in a memo obtained by Reuters and confirmed by Boeing.
Boeing, the Pentagon’s second-largest supplier, said the changes were the latest step in an affordability drive that has already reduced the company’s costs by $2.2 billion since 2010, according to the memo.
The measures come as U.S. weapons makers are under pressure to cut costs and preserve profit margins amid dwindling defense spending in the U.S.