Boeing’s chief executive has downplayed the likelihood that the company might move 737 manufacturing from Renton to Everett as part of a broader corporate-wide restructuring.
However, Boeing is planning big changes to its real-estate footprint, including a significant reduction of office space.
“I don’t want to move lines from one place to another just because [space is] available,” CEO David Calhoun says on 28 October when asked about possibly relocating the 737 production line.
Analysts have speculated Boeing might move 737 production from Renton to Everett, where widebody production rate cuts will free significant manufacturing space.
Speaking during Boeing’s third-quarter earnings call, Calhoun insists Boeing is “not ruling out big changes”.
But the company will not move production “just to fill empty space”, he adds.
That said, chief financial officer Greg Smith says facilities cuts are coming.
“We anticipate a reduction of approximately 30% in our office space needs compared to our current capacity,” Smith says. “We are reviewing every piece of real estate.”
The company will be able to make do on less office space due to staff cuts and work-from-home policies, he adds.
On 28 October, Boeing disclosed plans to reduce its workforce to some 130,000 staff by the end of 2021, down 19% from the 161,100 workers it employed at the end of 2019.
“We are assessing our overall facility and site footprint in light of the reduced demand,” Smith adds.
