Boeing South Carolina is not laying off any direct Boeing Commercial Airplane employees at this time. We are reducing our reliance on contract labor, as has been our plan.
Across Boeing we're constantly evaluating our employment levels in light of the business environment we face, the challenges ahead and the needs of each organization. In 2013 Boeing expects to hire between 8,000 and 10,000 people (gross), with overall employment levels at year-end anticipated to be flat or slightly down. This includes hiring in some areas and reductions in others.
Boeing regularly uses contract labor and industry assist to supplement its workforce during surge activities and on development programs that require a production ramp up - that's standard practice in the aerospace industry.
As we progress in improving efficiencies in our processes, training our entry-level employees, and growing the experience of our team in South Carolina, we expect to continue to reduce reliance on contract labor / industry assist to meet our production objectives. We've said all along that it's our plan to use direct-hire Boeing employees to perform the statement of work in South Carolina. Over the past few years as our site operations have expanded, contractors have been give opportunities to apply for direct-hire Boeing jobs - many have taken that opportunity.