Boeing to cut 2,000 jobs in finance and HR

Company will outsource some roles to Tata Consultancy Services, based in Mumbai

Boeing's revenue jumped 35 per cent annually to almost $20 billion in the fourth quarter of 2022. Reuters
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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.

Updated: February 07, 2023, 7:48 PM