Boeing has decided to outsource a significant portion of its IT functions to Dell in a bid to clean up the balance sheet, as the COVID-19 pandemic brings the aviation industry to its knees.
The move will eliminate as many as 600 jobs, mostly in the United States. The jobs being outsourced, include support of cloud services, databases, and information technology.
The eliminated jobs represent about 10% of the company’s IT staff, reported The Seattle Times, citing an email received by an employee from the company’s Vice President Susan Doniz.
Those losing jobs can re-skill themselves to find a different job within Boeing, or they can seek a position at Dell, noted Doniz.
Considering Doniz’s words, Boeing was not doing well even before the pandemic, and the outbreak only accelerated layoffs.
“This is a change we would have made even without a global pandemic,” Doniz said, adding that the pandemic “certainly quickened our pace.”
The outsourcing, according to Doniz, “will help increase our efficiency and speed, simplify operations and advance our digital transformation.”
In addition to its workforce, Boeing is shrinking its office space as well, because many of its white-collar employees are working from home ever since the virus broke out.
The airplane maker is also planning to reduce factory and office space by more than 5 million square feet.