US plane maker Boeing plans to cut nearly 2,000 jobs in finance and human resources in 2023, as it focuses on its engineering and manufacturing departments.
The company will outsource some roles to Tata Consultancy Services, based in Mumbai, a division of one of the India's largest business conglomerates.
“We have and will continue to communicate transparently with our teams that we expect lower staffing within some corporate support functions so that we can focus our resources in engineering and manufacturing, and directly supporting our products, services and technology development efforts,” Boeing said.
“As always, we will support affected teammates and provide assistance and resources to support their transition."
Nearly a third of the jobs will be outsourced to TCS, the BBC reported.
The company hired 15,000 employees last year and intends to recruit 10,000 more focused on engineering and manufacturing this year, it said.
The company’s stock jumped almost 1.5 per cent, trading at $209.89 a share on Tuesday.
Boeing develops, makes and services commercial planes, defence products and space systems for customers in more than 150 countries.
It employs more than 140,000 people across the US and in more than 65 countries.
In May 2020, Boeing cut 6,770 jobs in the US to save costs during the Covid-19 pandemic.
The coronavirus hit global aviation, tourism and hospitality sectors particularly hard, forcing carriers to go from growth to survival mode within a matter of months.
Last month, Boeing’s European rival Airbus said it was planning to hire 13,000 workers this year, with technology roles a key focus of its recruitment drive.
In January, Boeing posted a $663 million net loss in its fourth quarter due to higher production costs and supply-chain problems.
Its revenue jumped 35 per cent annually to almost $20 billion in the quarter that ended on December 31.
Boeing’s job cuts follow similar moves at other companies such as Microsoft, Amazon, Spotify, Alphabet and PayPal.
Companies in the US let go of 363,824 workers in 2022, 13 per cent more than 2021.
The technology sector was the leading job-cutting industry last year, according to global employment company Challenger, Gray and Christmas, based in Chicago.
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
