Boeing plans to cut around 2,000 finance and HR jobs in 2023 to ‘streamline’ corporate functions

Boeing plans to slash 2,000 jobs in the company’s finance and human resources departments in 2023, the aerospace giant announced Monday.

The positions will be eliminated through a combination of layoffs and attrition, Mike Friedman, a senior director of communications, said Monday.

The company, which recently relocated its headquarters from Chicago to Arlington, Virginia, grew its workforce by 15,000 last year totaling 156,000 employees. 

‘While no one has been notified of job loss, we will continue to share information transparently to allow people to plan,’ Friedman told The Seattle Times.

Meanwhile, Boeing plans to ‘significantly grow’ the overall workforce during the year with 10,000 employees focusing on engineering and manufacturing.

Boeing will cut around 2,000 jobs in finance and human resources by 2023 as it focuses on growing in other areas 

Boeing, which has been one of the largest private employers in Washington state, plans to outsource about a third of the eliminated positions to Tata Consulting Services in Bengaluru, India.

‘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,’ Friedman said. ‘So we’re streamlining.’ 

The Times reported about 1,500 of the company’s approximately 5,800 finance positions will be cut, with up to 400 more job cuts in human resources, which is about 15% of the department’s total staff.

The company employed 60,244 workers in Washington State by 2022, according to BizJournal. 

As Boeing focuses on engineering and manufacturing, the company is one of the several companies testing autonomous systems and crafts. 

The technologies enable autonomous landings, handle-inflight emergencies and relax the Federal Aviation Administration’s law requiring two pilots in the cockpit. 

Meanwhile, the company plans to grow by 15,000 on engineering and manufacturing

Meanwhile, the company plans to grow by 15,000 on engineering and manufacturing

About 1,500 of the company's approximately 5,800 finance positions will be cut

About 1,500 of the company’s approximately 5,800 finance positions will be cut

Meanwhile, Zoom CEO Eric Yuan also announced on Tuesday that about 1,300 employees, or 15 percent of its workforce, have been laid off on via email. 

Yuan said he will slash his own $1.1M salary by 98 percent and that other executives will also see their salaries trimmed by 20 percent, with all of them foregoing their 2023 annual bonuses.

Zoom CEO Eric Yuan announced that about 1,300 employees were laid off on Tuesday

Zoom CEO Eric Yuan announced that about 1,300 employees were laid off on Tuesday

Yuan said the layoffs impacted every department in the company, and that fired employees are going to receive up to 16 weeks salary and healthcare coverage. 

In explaining the latest cuts, Yuan said the company saw a huge boom during the pandemic as many looked to Zoom as a means to stay connected and conduct business. 

‘We needed to staff up rapidly to support the quick rise of users on our platform and their evolving needs,’ Yuan wrote. ‘Within 24 months, Zoom grew 3x in size to manage this demand while enabling continued innovation.’ 

Zoom, however, made mistakes when it failed to account how its growth was unsustainable, Yuan wrote. 

In the post-pandemic world, users no longer relied on Zoom as much, meaning the company had to roll back its growth. 

PayPal Holdings Inc., Alphabet Inc. and Amazon.com Inc. have also all made plans to dismiss thousands of workers and since November, technology firms as a whole committed to 110,793 job cuts.