Thoughts on Boeing's Layoffs
While losing 750 jobs in El Segundo and Seal Beach is painful, the layoffs Boeing announced today are a far cry from aerospace job cuts of previous years.
Boeing's layoffs seem to be company specific. Boeing simply didn't get enough contracts to maintain its current workforce. It doesn't appear to be due to a new downturn in the satellite market or any other broader factors.
And that's good news on one level. It means that there's still business out there waiting for Boeing to bid on and, possibly, win. As the adage goes, what doesn't kill you makes you stronger. And Boeing's contract losses are forcing it to become more efficient and competitive for the next contract competition.
Remember that after Boeing bought the El Segundo operation from Hughes in 2000, the commercial satellite market fell out of the sky, leading to 3,000 job cuts in El Segundo. And after the Cold War ended, many more aerospace workers lost their jobs amid an enormous industry downturn and wave of consolidations.
So today's news of layoffs will sting. It will affect people on the most personal level. Some families will be unable to pay their bills. Some will be forced to say goodbye to friends and family in order to find work in other parts of California or out of state.
And of course, workers will be unable to sleep as they wonder if they'll be next to receive a layoff notice.
But for those who remain at Boeing in Southern California, these layoffs are not necessarily a harbinger of things to come.
Instead, this whole episode could be a sign of better days ahead.
Here's a link to today's story.