What's the deal? The day after Boeing announces a $19 billion deal to produce 20 aircraft for China, the company lays off 1,000 workers in Southern California, as pointed out by journalist Gregory White at The Business Insider.
This comes, in addition to the 1,000 jobs in Orange County and the Long Beach / South Bay area that were eliminated, outsourced, or transferred out-of-state last year. Boeing has also notified the state that it will cut an additional 98 workers this month in other programs in Huntington Beach, plus 47 in Anaheim.
The new Boeing agreement with the Chinese government, which calls for a delivery of 200 aircraft comprised of both 737s and 777s over a period of three years (2011-2013), was part of a trade deal which took place amid an official visit by Chinese President Hu Jintao to the United States. Jintao also announced that the Chinese government would invest a total of $45 billion in U.S. products and services.
So why the job cuts? Boeing officials stated the new deal with China will have a positive impact on U.S. economy affecting over 100,000 jobs -- not only those at Boeing but at its thousands of suppliers throughout the states.