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Boeing will outsource more corporate jobs to India

Sep. 20, 2022 at 1:25 pm Updated Sep. 20, 2022 at 9:14 pm





oyle / Bloomberg News, 2009)More

[image: Dominic Gates] <https://www.seattletimes.com/author/dominic-gates>

By

Dominic Gates <https://www.seattletimes.com/author/dominic-gates/>

*Seattle Times aerospace reporter*

Boeing told nonunion corporate staff in an all-hands virtual meeting this
month that it will begin outsourcing finance and accounting jobs to Tata
Consultancy Services of India.

Boeing said Tuesday that about 150 jobs nationwide will be cut in the first
batch of layoffs, with more to come next year and thereafter. The first
layoff notices will go out in October.

“The Finance team is planning for lower staffing levels as it simplifies
processes, improves efficiency and shares select work with an outside
partner,” Boeing said in a statement, adding that it “will assess future
impacts as the process continues in the coming years.”

“It was kind of a shock the way they rolled it out,” said one senior Boeing
finance employee, who asked for anonymity to retain his job. “They had the
all-hands enterprise meeting and then four days later everyone was moved
into new organizations with new managers.”

Boeing’s finance group pre-pandemic consisted of about 6,000 employees
companywide, according to the company. At least 1,000 are in the Puget
Sound region, the finance employee said.

The announcement has left many people hanging, wondering if their jobs will
be among those cut but not knowing for sure.

“We’re trying to strike a balance, being as transparent as we can without
getting ahead of the work that we still have to do,” a Boeing spokesman
said. “We’ve been frank with employees that we do expect lower staffing
levels within finance. As soon as we know the details, we’ll share those.”

This week, Tata managers began directly consulting with Boeing finance and
accounting managers to identify the precise work statement the Indian
company will take over. Once that’s pinned down, Boeing will notify the
individuals who are to be laid off, including some management employees.

Before their departure, those employees will be asked to train the Tata
personnel in Boeing procedures to smooth the handover of the work.
Transformation = downsizing

The planned layoffs are part of a broad and concerted Boeing effort in
recent years to cut nonunion corporate jobs.

“Several of our corporate functions, including Information Technology and
Finance, have implemented changes to streamline their operations, resulting
in lower staffing levels” in those areas, Boeing said Tuesday.

That push began with moves to get rid of IT work that could be done more
cheaply elsewhere and was not seen as central to Boeing’s business.

In 2013, Boeing began cutting 1,500 IT positions
<https://www.seattletimes.com/business/boeing-to-shed-1500-it-jobs-here-over-next-three-years/>
in
the Puget Sound region. Last year, it outsourced to Dell another batch of
IT work, eliminating 600 jobs across the company
<https://www.seattletimes.com/business/boeing-aerospace/boeing-outsourcing-600-it-jobs-to-dell/>
.

Several years ago Boeing outsourced a range of low-level finance work to
Genpact, a multinational company founded in India and with a large presence
in that country.

According to the senior Boeing finance employee, Tata will take over some
of the Genpact work, though Genpact will continue to do some other work for
Boeing.

Boeing’s new Chief Financial Officer Brian West, who joined the company in
August last year, has intensified the focus on cutting financial and
accounting jobs.

In November, he appointed Amy Rodrigues to lead the finance and accounting
team, with a telling extension to her title: vice president of finance and
finance transformation.

Boeing corporate refers to the transformation as streamlining. To the
affected employees, it’s simply downsizing.

The downsizing comes as Boeing is scrambling in a tight labor market to
hire mechanics to build planes and engineers to design them after a severe
round of front-line job cuts during the global pandemic.

Boeing cut just over 20,000 jobs in 2020 companywide — 15,000 of those in
Washington state — as the pandemic hit its commercial airplane business
hard.

Last year, it cut a further 1,000 jobs in Washington state
<https://www.seattletimes.com/business/boeing-aerospace/another-1000-boeing-jobs-lost-in-wa-last-year-but-unions-hope-for-upswing-in-2022/>
.

This year, as air travel demand returned and Boeing started to ramp up 737
MAX production in Renton and poured engineering resources into fixing the
problems on the 787 and various defense projects, the company finally began
rehiring and adding back jobs, mostly in engineering and manufacturing.

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