Boeing tees up plans to shed 30% of its real estate as it looks to get leaner
In a cost-cutting move, Boeing is studying every commercial and industrial property it owns or rents with the intent to reduce its real estate footprint by 30%, the Chicago-based jet maker revealed Wednesday.
"We're reviewing every piece of real estate. Every building, every lease, every warehouse, every site to see how we can be more efficient," Chief Financial Officer Greg Smith said, adding space in the Puget Sound region and around the globe is being reviewed as part of the process.
"We will share our decisions as we make them," Smith added, saying reduced airplane demand, new remote working deals and plans to shrink its workforce to 130,000 people from 160,000 at the start of 2020 – including a 7,000-job cut rolled out on Wednesday -– are driving the company's decisions.
"If you asked us eight to nine months ago if we thought a large portion of our workforce could work virtually while still being productive, you might have heard skepticism," Smith said. "But these last several months have shown us that we can be more flexible."
https://www.bizjournals.com/seattle/news/2020/10/28/boeing-cre-industrial-real-estate-global-reduction.html
