The Boeing Company Case Study

The Boeing Company

In recent years, much attention has been given to downsizing, rightsizing, trimming the fat and other euphemisms for laying off workers. Generally, companies suggest that they are "forced" to lay off workers in order to cut costs and remain competitive. The financial community likes downsizing because it reduces the short term labor costs that companies must bear. Management likes downsizing for the same reason. This research considers the effects of downsizing and whether it is truly the panacea for a company's ills, or whether it brings with it more problems. A specific company, Boeing, and recent downsizing decisions it has made are also considered.

A. Issue Identified Similar To Global Communications

Boeing is in the same situation as Global Communications because they are also faced with an ever-changing and emerging aerospace market that requires better and better technology. Boeing is faced with needed expansion and growing to more international markets, but in order to achieve this goal they have to cut costs. Their solution is to cut jobs.

B. How The Company Responded To The Issue

Boeing responded like most companies in their quest to cut costs. They laid off more expensive workers and hired less expensive workers. They lost experience and skill, but gained cheap labor. They also implemented a clause to all potential employees that they must have prior training before they would be hired at Boeing. This saved them money in sending employees to expensive training schools and classes.

C. Outcomes Of The Company’s Response

Downsizing or layoffs are not taken well at any point in a company’s tenure. The same fared true for Boeing as far as public relations and how the ex-employees viewed the ordeal. Boeing was doing what most companies do, they want more with less. This is also