American aircraft manufacturing giant Boeing laid off around 180 employees from its Bengaluru centre, according to reports citing a source familiar with the matter. The pink slips were given to the people employed at its engineering technology centre, as part of its global workforce reduction.
The embattled aircraft maker, which employs around 7,000 persons in India, has been facing a global slowdown and rising costs, undercutting its bottomline. The staff, according to the source, were laid off in the previous quarter of fiscal 2024.
Boeing has not officially commented on the matter. Last month, Boeing's managing director of Commercial Marketing for India and South Asia, Ashwin Naidu stated how India and South Asia were the world’s fastest-growing commercial aviation market “due to strong economic and trade growth, rising household incomes and investments in infrastructure and development.”
Boeing’s commercial market outlook also hinted that India and South Asia’s cargo freighter fleet—including new and converted models—were set to grow five-fold “as the region expands its role in global supply chains, advanced manufacturing and e-commerce.”
Reports further cited the source who said that new positions were created even as the layoffs were on, hinting that the India workforce reduction was a measured action by Boeing.
Things seem to be turning around for Boeing after the US Air Force (USAF) announced on Friday that the company was awarded a contract to design, build, and deliver its next-generation fighter aircraft. Steve Parker, interim president and CEO of Boeing's Defense, Space & Security arm said: "We recognize the importance of designing, building and delivering a 6th-generation fighter capability for the United States Air Force.”
Termed the Next-Generation Air Dominance (NGAD) platform, the latest move is expected to “usher in a new generation of United States fighter jets that brings leap-ahead capability in range, survivability, lethality and adaptability,” according to the USAF statement.
“In preparation for this mission, we made the most significant investment in the history of our defence business, and we are ready to provide the most advanced and innovative NGAD aircraft needed to support the mission," added Parker. With the contract award, Boeing beat rival Lockheed Martin, sending its shares up by 5 per cent on Friday at the New York Stock Exchange.
