Boeing Announces Major Restructuring, Including 2,000 Job Reductions

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Boeing Announces Major Restructuring, Including 2,000 Job Reductions

Aircraft manufacturer Boeing has announced plans to cut 2,000 jobs from its finance and human resources departments and focus on expanding its engineering and manufacturing workforce. The restructuring is in line with the company's shift towards increased investment in products, services, and technology development.

Job Reductions in Finance and HR

According to a statement released by the company, the job reductions will occur primarily in finance and HR and will be a result of a combination of attrition and layoffs. No employees have been officially notified as of yet, however, the company has committed to providing transparent information to allow affected individuals time to plan.

“We expect about 2,000 reductions primarily in Finance and HR through a combination of attrition and layoffs,” Boeing said in a statement Monday. “While no one has been notified of job loss, we will continue to share information transparently to allow people to plan”.

While the reductions in finance and HR are expected to total 2,000 employees, the company has stated its intention to grow its overall workforce significantly this year. In 2022, the company grew its workforce by 15,000 and plans to hire another 10,000 employees in 2023, with a focus on engineering and manufacturing.

Outsourcing and Increased Focus on Engineering and Manufacturing

In a bid to further streamline operations and maximize efficiency, about a third of the work performed by the company will be outsourced to Bangalore-based Tata Consulting Services.

Despite the outsourcing, Boeing has emphasized that it will increase its employee count with a focus on engineering and manufacturing. In a statement to the Times, Mike Friedman, a senior director of communications at Boeing, stated that the company's corporate functions had grown quite large and that the restructuring would help streamline disparate systems and reduce bureaucracy.

Investing in the Future

Boeing has faced numerous challenges in recent years, including the grounding of its 737 Max aircraft following two fatal crashes. However, the company is determined to move forward and has committed to providing 10,000 new jobs this year in addition to the 15,000 jobs created in 2022.

The crashes, which claimed the lives of 346 passengers and crew members, were later found to be the result of a design flaw in the MCAS software. The system, which was designed to help pilots familiar with older generations of the 737 avoid additional training, ultimately directed both aircraft toward the ground and the pilots were unable to prevent the crashes.

After repairs and pilot training, the 737 Max is once again operational in most countries. Boeing's restructuring is a step towards a brighter future as the company continues to recover from the catastrophic events of 2018.

The company's commitment to expanding its engineering and manufacturing workforce and streamlining operations is a positive step towards a more efficient and innovative future.