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Boeing will outsource more corporate jobs to India

Dominic Gates, The Seattle Times on

Published in Business News

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.

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.

Taking the sting out of the relatively small number of white-collar layoffs ahead in finance, Boeing said Tuesday it has “significantly increased hiring in engineering and manufacturing as market demand increases and we drive stability in production and invest in engineering and innovation.”

“Overall, we have expanded the Boeing workforce by about 10,000 employees this year,” Boeing said.

That still leaves Boeing down about 10,000 jobs relative to the workforce it had pre-pandemic.

Boeing in India

Boeing now has about 3,500 direct employees in India.

 

The Boeing India Engineering & Technology Center in Bengaluru and Chennai undertakes complex advanced aerospace engineering work. Boeing has invested more than $200 million in the Bengalaru campus, its largest investment outside the United States.

The company has plans to develop an avionics manufacturing and assembly facility there — replacing an in-house capability that Boeing abandoned in 2003 and has been attempting to recreate since 2017.

Facing a shortage of engineers in the United States, and with its major engineering center in Moscow closed since the Russian invasion of Ukraine, Boeing sees India as a key supplier of engineering talent.

Another 7,000 people in India are employed at Boeing’s suppliers, including the multinational conglomerate Tata Group, headquartered in Mumbai.

Boeing this year named Tata Aerospace & Defense, India’s largest private aerospace manufacturer, a “2022 Supplier of the Year.”

That Tata division makes aircraft landing gear doors, vertical fins, floor beams, underwing and overwing panels, fuselages, secondary structures, and tail cones. A joint venture with Tata Group also produces AH-64 Apache helicopter fuselages in Hyderabad for military customers around the globe.

Tata Consultancy Services, the Tata Group subsidiary taking over the Boeing finance jobs, is a major IT and financial services consulting company with about 600,000 employees worldwide. Its market capitalization stands at $140 billion, 60% larger than Boeing’s.

©2022 The Seattle Times. Visit seattletimes.com. Distributed by Tribune Content Agency, LLC.

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