Boeing to cut about 150 finance jobs in the United States
Boeing will cut about 150 finance jobs at its U.S. sites this year as part of an effort to simplify its corporate structure and improve efficiency.
“Over the past several years, we have simplified our corporate structure to reduce complexity and focus more resources on engineering, manufacturing and product development,” a Boeing spokesperson told FOX Business. “Several of our business functions, including information technology and finance, have implemented changes to streamline their operations, which has resulted in lower headcount within certain business functions.”
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The spokesperson added that the aerospace giant will start sharing “selected works” with India’s Tata Consultancy Services and “assess future impacts as the process continues in the coming years. “.
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According to its latest annual report, Boeing had a total workforce of about 142,000 employees at the end of 2021, with 12% outside the United States. The total included approximately 47,000 union members.
Boeing has since expanded its workforce by about 10,000 employees this year to “ensure production stability and invest in engineering and innovation.”
The cuts are unrelated to Boeing’s plans to move its headquarters from Chicago to Arlington, Va., according to the spokesperson.
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The planned layoffs come as Boeing delivered its first 787 Dreamliner to American Airlines in August following Federal Aviation Administration approval. Boeing halted deliveries in May 2021 after the FAA raised concerns about its proposed inspection method. In September 2020, the FAA said it was investigating manufacturing defects in some 787 airliners.
The agency’s heightened scrutiny of Boeing’s aircraft certification comes after two fatal crashes in 2018 and 2019 grounded its 737 Max plane. The 737 Max has since returned to the skies after being cleared to fly in November 2020.
In July, Boeing announced that its quarterly profit fell to $160 million, or 32 cents per share. Sales in its second quarter fell 2% to $16.7 billion. The company generated positive cash flow from operations in the quarter and said it remains on track for positive cash flow for the full year.
Boeing shares are down about 29% year-to-date.
Reuters contributed to this report