Boston, MA 05/06/2014 (wallstreetpr) –The Boeing Company (NYSE:BA) is ready to move its engineering center from Washington State to Alabama as part of its effort to save up to $100 million annually. The giant plane manufacturer confirmed the same last year as it plans to move as many as 400 high paying jobs to Alabama. This is part of a strategy to reorganize and realign the company’s research and technology operations.
The 400 posts are part of positions that are being divided among centers such as St Louis Mo, North Charleston and Seattle, Wash. The restructuring essentially means that Washington state and California state, will lose combined job offering of up to 1,200 with the big gainers on the other hand being Alabama, Missouri and South Carolina
The new development center in Alabama will focus on Simulation as well as decision analytics and chemical technology. The implementation of the new realignment plan is expected to cost Boeing up to $150 million in cost but should save costs of up to $100 million by 2016. Cost saving in this case will mostly be as a result of lower wages in Alabama compared to California.
Relocation to Result in Annual Savings
Each engineering post relocated to Alabama will result in annual savings of up to $60,000 in pay and benefits with costs being the reason behind the planned movement. The giant plane maker also plans to tap into a new talent in the area and reduce its footprint in areas where production has essentially dropped.
The projected salary at the new stations will be $89,000 compared to $125,000 currently being paid in Washington and California location. Documents already show that 40% of the new jobs will be entry level engineering positions. The relocation comes at a time that The Boeing Company (NYSE:BA) has confirmed it has signed a multibillion dollar contract with the U.S Navy, to deliver up to 47 new F/A-18 fighter jets and EA-18G electronic attack planes.
