zerohedge.com / by Tyler Durden / Nov 15, 2016 5:20 PM
Earlier this morning, Boeing’s shares dropped after United Continental Airlines said it would delay orders for 61 Boeing 737 jetliners, worth roughly $5 billion, and instead order the newer 737 MAX models for delivery in later years. Boeing, of course, downplayed the impact of the decision saying it would not affect its plan to increase production rates of 737s, and stressed that it continues to have orders for more 737s than it can produce.
Given that, it does seem to be curious timing that Boeing has just announced an operational restructuring that will result two site closures in El Paso, Texas and Newington, Virginia. While we’re sure there are “efficiency gains” to be generated from the consolidation of sites, cutting 4.5 million square feet of facility space in just 4 years seems like there may be a bit more behind the cuts.
“In order to push ourselves farther and win more business, we need to make the most of our resources and talent,” said Leanne Caret, president and CEO, Defense, Space & Security. “These steps will help us be a stronger partner for our customers worldwide.”
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