Layoff wave: Boeing to slash 2,000 jobs; outsourcing employees at TCS hit hard, Report

Aviation giant Boeing is slashing 2,000 jobs in finance and HR verticals this year and the company outsources about a third of those jobs to Tata Consulting Services (TCS) in Bengaluru, the media reported.

The rest of the jobs will "disappear" as Boeing reduces its finance and HR support services, reports Seattle Times, citing Mike Friedman, a senior director of communications at Boeing.

Tata Consulting Services

"Boeing employees trained Tata Consulting Services employees on that initial set of outsourced work, which TCS is scheduled to take over in the coming week," the report mentioned.

Boeing now has nearly 3,500 direct employees in India and another 7,000 people in India employed at its suppliers, including Tata Group.

"The TCS non-engineering work for Boeing will be done at a new facility in Bengaluru," the report said.

According to the report, these corporate positions will be slashed through substantial job cuts and layoffs.

"We expect about 2,000 reductions this year primarily in Finance and HR through a combination of attrition and layoffs," Boeing confirmed.

"Over time, some of our corporate functions have grown quite large. And with that growth tends to come bureaucracy or disparate systems that are inefficient. So we're streamlining," Friedman was quoted as saying.

Finance and HR personnel

5,800 positions will be lost overall, or approximately 1,500 jobs, in finance. Up to 400 more jobs, or around 15% of the HR personnel, may also be lost.

Boeing has started forcing managers preparing employee annual performance assessments for 2022 to categorise 10% of its workforce as failing to meet all goals, in yet another effort to reduce costs.

Boeing aims to decrease work through streamlining processes and eliminating some duties in addition to outsourcing labour.

With inputs from Agencies.