Boeing Companys Commercial Airplane unit announced yesterday that it intends to reduce workforce further in 2017, following a projected 8% cut in jobs during the current year. Such a move comes amid weakening demand for new aircraft, and more specifically twin-aisle jetliners such as the companys 777 model. The aircraft manufacturer did not reveal any specific numbers regarding next year, but yet, it noted it was almost done with its 2017 budget planning.
Boeing shares closed higher for a second consecutive trading session on Monday. The stock added 1.09% ($1.68) to $156.18, after going up as high as $156.97, or a level not seen since December 13th ($160.07). The daily rate of increase has been the steepest since December 7th, when the stock gained 1.25%. In the week ended on December 18th Boeing shares retreated 1.27% compared to a week ago, which marked their first drop in the past four weeks. However, the stock has extended its advance to 3.73% so far during the current month, following three successive months of gains. In November Boeing shares added 5.71% to their market value.
“To successfully compete and win new orders that will fund future product development and growth requires us to achieve much better performance,” the companys Chief Executive Officer Kevin McAllister and Vice Chairman Ray Conner stated in a December 19th memo to Boeing Commercial Airplane employees, cited by Reuters. The DJIA-featured plane maker “will need to do more in 2017” in order to reduce costs and make its jets more affordable, according to the memo.
Boeings Commercial Airplane unit laid off 6 115 employees in the period through November, or a 7.3% increase in comparison with the numbers reported on December 31st 2015, employment data by the company revealed.
According to yesterdays memo, the airliner is offering a voluntary layoff program early next year, while involuntary layoffs may occur in some cases. All employees who take part in the voluntary layoff program will be paid a sum equal to one weeks pay for every year served, for up to 26 weeks.
The above mentioned memo came out one week after Boeing officially announced it intends to reduce production of its twin-aisle 777 jet to 5 per month in August 2017, which would represent a 40% cut in comparison with the present rate of 8.3 jets per month. The airliner will cut production of the 777 model further to 3.5 jets a month in 2018, so that it could focus on the assembly of its 777X model.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, todays levels of importance for the Boeing stock are presented as follows:
R1 – $156.37
R2 – $156.55
R3 (Range Resistance – Sell) – $156.74
R4 (Long Breakout) – $157.30
R5 (Breakout Target 1) – $157.95
R6 (Breakout Target 2) – $158.22
S1 – $156.00
S2 – $155.81
S3 (Range Support – Buy) – $155.62
S4 (Short Breakout) – $155.06
S5 (Breakout Target 1) – $154.41
S6 (Breakout Target 2) – $154.14
By using the traditional method of calculation, the weekly levels of importance for Boeing Company (BA) are presented as follows:
Central Pivot Point – $155.88
R1 – $158.69
R2 – $162.89
R3 – $165.70
R4 – $168.52
S1 – $151.68
S2 – $148.87
S3 – $144.67
S4 – $140.48
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