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Early Retirements Limit Boeing Layoffs

Sat., June 17, 1995

More than 8,300 Boeing Co. employees have signed up for early retirement under a program that expired Friday, a company spokesman said.

That’s more than expected, meaning the company will lay off fewer workers as it tries to cut its payroll by 12,000 jobs this year.

The early retirement program “had the effect we were looking for,” spokesman Christopher Villiers said. The company wanted to decrease employment while minimizing the effects on its work force and cities where Boeing plants are located.

Boeing earlier estimated the early retirement program would cost $350 million to $400 million. “In all probability it will be more than that,” Villiers said.

The cost will be funded through Boeing’s retirement plan and will show up as a one-time charge on company earnings, he said.

Boeing offered early retirement to employees 55 years or older who had worked 10 years at Boeing. As an enticement, they could add five years to their length of service and three years to their age to boost their benefits. About 14,000 workers were eligible.

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