NEW YORK (TheStreet) -- Shares of Boeing Co. (BA) - Get Report are slipping 1.97% to $128.28 on Wednesday afternoon as the aerospace company will cut about 4,000 jobs in its commercial airplanes division by mid-year and about 550 jobs in a flight and lab tests division, Reuters reports.
The company will eliminate 1,600 positions in the commercial airplanes division by voluntary layoffs and the remainder of cuts are expected to be completed by not filling open positions, a Boeing spokesman told Reuters.
"While there is no employment reduction target, the more we can control costs as a whole the less impact there will be to employment," the spokesman said.
The job cuts will include hundreds of executive and managerial positions and will not be completed through involuntary layoffs, Reuters noted.
The company will also slash about 10% of its roughly 5,700 jobs in its test and evaluation division, according to a spokeswoman.
As of December 31, Boeing had a total of 161,400 employees.
TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts Plus charitable trust, commented on the layoffs in the above video: "The competitive advantage to Airbus (EADSY) is so much better right now than Boeing because of the euro. You're losing a lot of orders. And that's why you have layoffs."
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on Boeing.
This is driven by several positive factors, which should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks covered.
Among the primary strengths of the company is its respectable return on equity which we feel is likely to continue. The team feels its strengths outweigh the fact that the company has had sub par growth in net income.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: BA