Boeing to make workforce lean, lay off 600 employees

The Company will begin outsourcing its IT work to Dell with effect from April

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As part of Boeing’s efforts to ensure efficiency by operating as a leaner and more streamlined organisation, The Company will

will begin outsourcing information technology (IT) work to Dell, Aprin onwards. However, this will result in about 600 Boeing employees losing their jobs. Over the next couple of year, the Company will also work on bringing down its office and factory space by over five million square feet and shift a significant part of its workforce to the remote-working mode. It will also now focus more on advancing its digital transformation.

About 10 per cent of the Company’s workforce will be asked to leave, as Boeing will outsource work pertaining to cloud services support, IT and databases. The maximum brunt of layoffs will be faced by the staff in the Puget Sound region, St. Louis and Charleston, South Carolina.

The employees who will be impacted will either have be laid off, or assigned to other departments within the Company or seek employment with Dell. However, finding jobs elsewhere within Boeing will not be easy, as the Company has already slashed about 20,000 jobs in 2020, and plans to eliminate about 11,000 more this year. Also, a majority of these employees are not part of any union.

The Company has been working towards creating a leaner organisation for some time now and the coronavirus outbreak only made it implement its plans faster.

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