Boeing to cut 777 production, slash Everett jobs

Dec 20, 2016

Boeing told its workers Monday it is cutting 777 jet production in August 2017 to five airplanes a month from the current rate of seven per month, a move that will likely costs hundreds of jobs in Everett.

The move came as Boeing also announced a 30 percent increase in the quarterly dividend payout to its shareholders, also next year. Both moves were approved by Boeing’s board.

Elizabeth Lund, a Boeing vice president and general manager of the 777 program and Everett manufacturing site, announced the 777 production rate cut to workers in an internal note, saying that the move would result in job losses in 2017 at the massive Everett plant where 777s are made.

"While the exact number of affected positions has not been determined, we will do our best to lessen the impact," Lund said in her message.

She said the widely expected decision was taken after lengthy discussions "about current market demand."

Sales of wide-body jets by Boeing and its rival Airbus have sagged around the world in 2016. A large 777 order from Emirates, which Boeing was hoping would come through before year end, did not materialize, as the Dubai-based airline struggles with its own financial challenges.

Source: Portland Business Journal