Dvorak: Adios California Boeing to shutter plants

The first casualty of California’s new tax hike is defense contractor giant Boeing. The firm told its employees in California yesterday that major cut backs in military spending and shrinking bottom line profits gave the company no other choice.

As a result of restructuring, Boeing will close plants in California and consolidate operations in order to stem lower profit margins.

“We are raising the bar higher because our market challenges and opportunities require it, and our customers’ needs demand it,” said Dennis Muilenburg, chief executive of Boeing Defense, Space & Security.

The nation’s second largest defense contractor said they would reduce management level positions by 30 percent and slash costs by $1.6 billion through 2015.

In a company memo Muilenburg said the move was a result if its need to “be more competitive while investing in technologies and people.”

The manufacturing giant also told its employees that it would be cutting outside vendors as another method to curb spending.

While the company did not announce how many California employees would lose their jobs, Muilenburg said they were trying to relocate some workers to other plants.

The Boeing plant closures cannot be welcome news for the state of California’s bottom line. Financial experts said a stagnant economy, a $20 billion deficit and a new tax increase set to begin in January will only add to the Golden State’s unfriendly business environment.

For more stories: http://www.examiner.com/homeland-security-in-national/kimberly-dvorak

© Copyright 2012 Kimberly Dvorak All Rights Reserved.

Written by Kimberly Dvorak, and published November 8, 2012 at Examiner.com, and submitted to the Federal Observer for republication by the author.

~ The Author ~
Kimberly Dvorak is a freelance writer who resides in San Diego. She has covered local, national and international news stories for more than 15 years. As a National political correspondent, she has lived and covered stories in Africa, Europe, South America and Asia over the past 20 years.

6 thoughts on “Dvorak: Adios California Boeing to shutter plants

  1. Neal

    We got the unfortunate combo of another four years of Obastard, and Jerry ‘Moonbeam’ Brown got his tax increase. God, why are most Californians so damn stupid?

  2. hippybiker

    A lot of people are leaving Californicate. The only problem is, they are trying to bring the Californication nonsense with them!

  3. A Reader

    History repeats itself.

    Up until 1950s, the U.S. used to be the leader in production of steel. Then the unions demanded more and more, and brought the entire steel industry down to collapse. Parts of Pittsburgh became a ghost town as the steel mills were closed.

    I saw them some 20 years ago, miles of abandoned, empty, and devastated property. What a waste of great manufacturing ability caused by unions’ shortsightedness and sense of invincibility.

    Now they are doing the same, with the ruling Democratic Party’s backing, in California. If they expect different result this time then they are insane (according to Einstein’s definition of insanity).

  4. John F. Pickelsimer

    I cannot, for the life in me, determine why anyone would desire to preside over the demise of the greatness of the American ability to produce. What point are you trying to make? Are you jealous that the armpit or anal orifice part of the world your ancestors came from has no worldly contribution to generate wealth except the enslavement of its own people so you wish to transfer that here? Or is it the inbred lack of initiative in some portion of society that thinks the government has all the answers? You know, the ones that were always crying out, “There oughta be a law”, until now we are completely smothered by them! Or could it be the ones blinded by personal jealousies of anyone who had an original idea and followed through on it to turn it into a profitable organization because they never had an idea that could work it’s way out of a compost heap nor the inclination to get off their collective azzed and take it to town? Or maybe it’s just those who figured out how to manipulate Uncle Lyndon’s givermint pah-row-graa-umms into a lifetime of being supported by the hard work of the productive tax-payer public? Whatever and whoever they are are welcome to take a rowboat to China around the capes and we can only hope the weather is favorable for you.


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