Boeing is cutting jobs - Curt Lewis

Boeing set to cut jobs at commercial jet unit in Seattle

The 787 Dreamliner is close to the point where it is no longer losing money on each jet delivered, but it won't be making significant profits for a long time. (The Associated Press )

SEATTLE - The Boeing Co. says it will be eliminating commercial airplane jobs as part of a cost-cutting effort.

No details were given on the timing or scale of the job cuts, but the tone of the announcement suggests a significant impact across the Seattle-based unit.

"We will start reducing employment levels beginning with executives and managers first," said company spokesman Doug Alder.

Alder said the reductions would ultimately affect "employment levels across all" of the commercial airplane unit. Attrition and voluntary layoffs would be used at first. However Alder said "involuntary layoffs may be necessary."

The Seattle Times reports that Boeing Commercial Airplanes chief executive Ray Conner announced the job action in a webcast to all employees.

At the beginning of this year, Boeing employment in Washington state stood at 79,238, The Times reported. That's a 7,800 job drop from the most recent peak in the fall of 2012 of 87,023.

Boeing approached the International Association of Machinists union last week to discuss a voluntary layoff program. Union spokesman Bryan Corliss told the newspaper the company has provided no details.

European rival Airbus has been putting significant financial pressure on Chicago-based Boeing, pressure that is likely to increase through the end of the decade.

Boeing's 737 and 777 jet programs have been the two cash cows for the commercial airplane unit for years. But last year, the Airbus A320 won a 60 percent share in the narrowbody market against the 737, forcing Boeing to reduce pricing and profit margins on that program.

Boeing's highly anticipated 787 Dreamliner, now delivering 10 airplanes a month, is far from making up the difference in incoming cash, The Times reported. Though the 787 is close to the break-even point, it is not expected to make significant profits for a long time.