Boeing said that about 150 jobs nationwide will be cut in the first batch of layoffs, and will outsource them to Tata Consultancy Services (TCS).
Boeing informed its non-union corporate staff through an all-hands virtual meeting.
Last year the aerospace company Boeing has also outsourced IT work to Dell. This also affected the employees as hundreds of jobs were cut. The company had already started outsourcing some of its IT work to other companies to reduce costs.
“Several of our corporate functions, including Information Technology and Finance, have implemented changes to streamline their operations, resulting in lower staffing levels” in those areas, Boeing said Tuesday.
That push began with moves to get rid of IT work that could be done more cheaply elsewhere and was not seen as central to Boeing’s business.
As per media reports, The finance employees have been shifted to new divisions/units with new managers. The Company struggles with a tight labour market. Also, it is currently struggling to find quality mechanics to build planes and engineers for its design team.
Boeing said in a statement, “The Finance team is planning for lower staffing levels as it simplifies processes, improves efficiency, and shares select work with an outside partner.”
“Will assess future impacts as the process continues in the coming years”, the company in a statement further added.
An anonymous employee also told the News outlet: “It was kind of a shock the way they rolled it out.
“They had the all-hands enterprise meeting and then four days later everyone was moved into new organizations with new managers.”
The existing employees will train the TCS personnel before they leave so that the handover is smooth. The planned layoffs are part of a broad and concerted Boeing effort in recent years to cut non-union corporate jobs.
The company will also lay off employees across the US soon aimed at improving efficiency and simplifying processes with a leaner team.
According to the company, Boeing’s finance group pre-pandemic consisted of about 6,000 employees companywide.