Boeing to cut around 150 finance jobs in US
Aerospace giant said cuts unrelated to moving headquarters from Chicago to Arlington, Virginia
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Boeing will cut around 150 finance jobs across its sites in the United States this year as part of an effort to simplify its corporate structure and improve efficiency.
"For the last several years, we’ve been simplifying our corporate structure to reduce complexity and focus more resources in engineering, manufacturing and product development," a Boeing spokesperson told FOX Business. "Several of our corporate functions, including Information Technology and Finance, have implemented changes to streamline their operations, resulting in lower staffing levels within some corporate functions."
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BA | THE BOEING CO. | 166.81 | +2.48 | +1.51% |
The spokesperson added that the aerospace giant will begin sharing "select work" with Tata Consultancy Services of India and "assess future impacts as the process continues in the coming years."
UNITED AIRLINES GROUNDS PLANES AS IT COMPLETES INSPECTIONS
According to its latest annual report, Boeing had a total workforce of approximately 142,000 employees as of the end of 2021, with 12% located outside the U.S. The total included approximately 47,000 union members.
Boeing has since expanded its workforce by about 10,000 employees this year to "drive stability in production and invest in engineering and innovation."
The Boeing logo hangs on the corporate world headquarters building of Boeing November 28, 2006 in Chicago, Illinois. (Photo by Scott Olson/Getty Images) ((Photo by Scott Olson/Getty Images) / Getty Images)
The reductions are unrelated to Boeing's plans to move its corporate headquarters from Chicago to Arlington, Virginia, 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 approval from the Federal Aviation Administration. 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 flaws in some 787 jetliners.
The agency's increased scrutiny on the certification of Boeing's planes comes after two fatal crashes in 2018 and 2019 grounded its 737 Max jet. The 737 Max has since returned to the skies after being cleared to fly in November 2020.
A Boeing 787-10 Dreamliner taxis past the Final Assembly Building at Boeing South Carolina in North Charleston, South Carolina, United States, March 31, 2017. (Reuters/Randall Hill/File Photo) | Reuters
In July, Boeing reported that its quarterly profit fell to $160 million, or 32 cents a share. Sales during its second quarter fell 2% to $16.7 billion. The company generated positive operating cash flow during the quarter and said it remains on track for positive cash flow for the full year.
Shares of Boeing are down approximately 29% year to date.
Reuters contributed to this report