Boeing Offers Retirement Incentives to 13,000 Workers : Aerospace: The move is aimed at easing the need for more layoffs, but 5,000 are warned anyway.

Boeing Co. said Friday that for the first time it is offering special retirement incentives to 13,000 workers to ease the need for layoffs at the airplane maker, which has been cutting its staff because of falling orders.

The company also issued 60-day warnings of possible layoffs to 5,000 employees as part of its previously stated goal of reducing its work force by 7,000, or 6%, this year. Last month 972 employees received similar notices.

A company spokesman said Boeing has not adjusted its target, although, depending how many people decide to retire, the ultimate work-force reduction this year could be far higher than 7,000.

Last year the company cut 17,000 jobs, bringing its work force to 117,000. That was down from nearly 166,000 five years earlier.

Employees eligible for the retirement program, which could cost the company $400 million or more, are 55 or older and have worked for the company for at least 10 years. Those who accept will have five years added to their length of service and three years to their ages to increase their benefits, Boeing said.

The program, available between April 14 and June 16, will be retroactive to Jan. 1 and will cover eligible workers who have already retired or been laid off this year.

Analysts said the retirement incentive offer could help the company cut costs and boost morale.

Although the plan will result in a large charge against second-quarter earnings, analysts said they did not expect any negative effect on long-term earnings potential.

“I think it’s probably a positive,” said Bill Whitlow of Pacific Crest Securities.

“Maybe, instead of reducing the younger staff, you reduce the people who are a little bit closer to retirement, with higher pay, and you keep the younger blood in there,” Whitlow said.

Boeing said that if the incentives are accepted by half of the more than 13,000 people eligible, the company would expect to take a charge of up to $400 million against second-quarter earnings.

Industry sources said similar programs offered by other manufacturers have gotten an acceptance rate of anywhere from 30% to 70%.

The incentive program, Boeing’s first, is open only to employees already eligible to retire.”This program is expected to reduce, but not eliminate, involuntary layoffs,” said Larry McKean, senior vice president of human resources.

The 5,000 layoff notices, sent out on what local media dubbed “Black Friday,” represent the largest number Boeing has issued at one time since it began sending out such notices in 1991.

Boeing spokesman Chris Villiers said that historically the company has laid off 60% to 80% of the employees who get 60-day notices. However, that number could be reduced due to the retirement program, he said.

Boeing stock closed up 75 cents at $49.875 Friday on the New York Stock Exchange.