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Boeing (New York Stock Exchange:BA) confirmed that it expects to cut ~2K jobs this year, primarily in finance and HR through a mix of layoffs and attrition, The Seattle Times reported on Monday.
The company will subcontract about a third of the jobs to Tata Consulting Services in India, while the rest will disappear as Boeing (licensed in letters) reduces its financial support and human resources services, according to a senior director of communications.
“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 told the Times. “So we’re simplifying.”
Separately, Boeing (BA) has reportedly started requiring managers of white-collar staff preparing annual performance reviews by 2022 to classify 10% of their staff as not meeting all expectations.
Boeing (BA) said last month that it expected to hire 10,000 workers in 2023, but some support positions would be cut.
Anticipating “worse than expected” supply chain constraints that will cap profits on aircraft deliveries, analysts at RBC Capital recently downgraded Boeing to Sector Perform.