Facing weaker air traffic and pressure on military budgets, Boeing Co. announced plans to cut 10,000 jobs after reporting a surprise fourth-quarter loss Wednesday.
The Chicago-based company, which makes passenger, freight and military jets, became the latest blue chip company to mirror a slowdown in the world economy, as air travel wanes, airlines cut costs and the government shifts focus to construction spending. Boeing, whose orders plunged in 2008 following three years of strong bookings, also announced a lower-than-expected earnings forecast for this year.
Boeing's job cuts include plans announced earlier this month to eliminate 4,500 positions from its Seattle-based commercial jet business. Jim McNerney, Boeing's chairman, president and chief executive, said Wednesday that an additional 5,500 positions would be slashed in other parts of the company, including its defense division, which accounts for about half of Boeing's revenue. Associated Press
Apparel maker Hanesbrands Inc. said Wednesday that its fiscal fourth-quarter profit fell 64 percent, hurt by lower sales and by charges related to its restructuring, but the company's adjusted results beat analyst expectations.
Profit for the quarter that ended Jan. 3 fell to $17.9 million, or 19 cents per share, from $49.8 million, or 52 cents per share a year earlier.
Excluding a 31-cents-per-share charge for restructuring and related items, it earned 50 cents per share.
Analysts polled by Thomson Reuters on average predicted a profit of 37 cents per share on revenue of $1.08 billion.
The Winston-Salem-based company, whose brands include Hanes, Champion and Playtex, has been cutting jobs and closing plants in an effort to streamline operations since it spun off from Sara Lee Corp. in 2006. Associated Press
Time Warner Inc.'s AOL online unit will cut as much as 10 percent of its work force because the U.S. recession has forced advertisers to reduce spending.
Employees won't receive merit pay increases in 2009, New York-based AOL said Wednesday in a memo to workers. The number of people fired will total 700, said a person familiar with AOL's plans.
The “deepening economic recession” has affected all corners of the economy, according to the AOL memo. Time Warner, the world's biggest media company, said this month that it will post a loss for 2008, its first in six years. The Warner Bros. film and television unit is eliminating or outsourcing 800 positions. Publishing division Time Inc. said in October it would cut 600 jobs, or 6 percent of the work force. Bloomberg News