Boeing is planning to cut around 4,000 jobs by June and may possibly double that figure this year to reduce costs as it faces growing competition from France-based Airbus.

A company spokesman was quoted by The Guardian that it would reduce a third of its employees working in the commercial airlines division through voluntary retirements. The rest of the positions would be left vacant.

The job losses would cover hundreds of executives and managers, reports the publication.

Boeing also expects to axe around 10% of the 5,700 jobs in its test and evaluation division that undertakes flight and lab tests.

Until last December, Boeing employed a total of 161,400 people with the commercial airlines division representing half of the total workforce.

"The more we reduce non-labour costs, the less impact there will be to jobs."

Last year, the company delivered 762 aircraft for revenues of $125bn, whereas Airbus delivered 635 aircraft, earning $91.6bn revenue during the same period.

Boeing’s aircraft deliveries are estimated to increase this year but in January, the number showed a downward trend by around 20 than last year because of internal manufacturing changes.

The reductions in the workforce are part of the company’s main cost-saving initiative that includes reducing supplier costs, inventory, overtime, services and contractor expenses, reports The Seattle Times.

Boeing also stated that if it is not able to achieve enough savings elsewhere and require more job cuts, the changes may be done later in the year.

Boeing Commercial Airplanes (BCA) communications vice-president Sean McCormack was quoted by The Seattle Times as saying: "Our targets are dollar-based.

"The more we reduce non-labour costs, the less impact there will be to jobs."