Boeing is slashing around 2,000 jobs this year in its finance and human resources departments through a combination of attrition and layoffs. According to a Seattle Times report, the company is outsourcing about a third of these jobs to Tata Consulting Services (TCS) in Bengaluru.
Boeing employees trained TCS employees on that initial set of outsourced work, which TCS is scheduled to take over in the coming week, the report stated.
“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,” Mike Friedman, a senior director of communications at Boeing Friedman told Seattle Times.
Boeing now has nearly 3,500 direct employees in India and another 7,000 people in India employed at its suppliers, including the Tata Group, according to the report.
“The TCS non-engineering work for Boeing will be done at a new facility in Bengaluru,” the report added.
Last year, Boeing had said it planned to cut about 150 finance jobs in the United States to simplify its corporate structure and focus more resources into manufacturing and product development.
About 1,500 jobs will be cut in finance from a total of 5,800 company-wide, and up to 400 more in HR, about 15% of the workforce there. The report said that in another move to cut costs, Boeing has started requiring managers preparing employee annual performance reviews for 2022 to classify 10% of their staff as failing to meet all expectations. In addition to outsourcing work, Boeing hopes to reduce work both by simplifying processes and by cutting out some tasks, the report said.