The Boeing Company is outsourcing nearly 700 white-collar American finance and human relations jobs to Bengaluru, India while securing millions more in United States tax dollars through congressionally-approved spending packages to support Ukraine in its war with Russia.
Last month, reports confirmed that Boeing is laying off roughly 2,000 American employees doing financial and human resources (HR) work. Almost 700 of their jobs will be outsourced to India through the multinational corporation’s contract with Tata Consulting Services (TCS), an outsourcing firm based in India.
TCS is responsible for an outsourcing-offshoring business model that widens profit margins for corporations like Boeing by sending American jobs to lower-wage countries like India. Typically, the model begins with TCS importing foreign H-1B visa workers to replace American professionals. Eventually, the jobs are wholly offshored to a foreign country, mainly India.
Boeing reportedly had hundreds of its American employees train their foreign replacements employed at TCS before laying them off. Late last year, Boeing laid off about 150 Americans in finance and HR and sent their jobs to India.
The Seattle Times reported:
Boeing employees trained Tata Consulting Services employees on that initial set of outsourced work, which TCS is scheduled to take over in the coming week. [Emphasis added]
Boeing now has about 3,500 direct employees in India and another 7,000 people in India employed at Boeing’s suppliers, including Tata Group. [Emphasis added]
The TCS non-engineering work for Boeing will be done at a new facility in Bengaluru, formerly known as Bangalore. [Emphasis added]
A spokesman for Boeing told Breitbart News that the layoffs are not specific to one particular location and focused on the corporation’s plans to hire 10,000 engineering and manufacturing employees though the locations of those hires are also unclear.
“We grew Boeing’s workforce by 15,000 last year and plan to hire another 10,000 employees this year with a focus on engineering and manufacturing,” the Boeing spokesman said:
As we have shared, we will also continue to simplify our corporate structure. We have and will continue to communicate transparently with our teams that we expect lower staffing within some corporate support functions so that we can focus our resources in engineering and manufacturing and directly supporting our products, services and technology development efforts. As always, we will support affected teammates and provide assistance and resources to support their transition.
Breitbart News reached out to TCS but did not receive a response.
Boeing’s latest move to outsource American jobs to India comes as the corporation has continued raking in millions from U.S. taxpayers through congressionally-approved spending packages to fund Ukraine in its war with Russia.
Last month, Congress and President Joe Biden’s administration approved $1.75 billion in taxpayer money that will go directly to defense contractors like Boeing, as well as General Dynamics and Raytheon.
Meanwhile, last year, Boeing scored a $5 billion contract with the federal government’s Missile Defense Agency. In 2019, the Defense Department remained Boeing’s largest customer as nearly $30 billion of its profits came from taxpayer-funded federal contracts — representing more than 30 percent of the company’s annual profits.
In addition to billions in Defense Department contracts, Boeing has profited immensely from tax cuts passed by Republicans in Congress in 2018. The GOP tax cuts saved the corporation about $1.1 billion — this after years of already paying relatively low taxes at an average federal tax rate of less than nine percent over ten years.
Boeing is one of Washington, DC’s, most powerful private entities as millions of dollars are spent on lobbying Republicans and Democrats on legislation that would benefit the corporation’s profit margins.
Last year, Boeing’s affiliated political action committee (PAC) gave nearly $1 million to House and Senate Democrats’ campaign committees and House and Senate Republicans’ campaign committees. Hundreds of thousands more in campaign cash was given directly to Republican and Democrat candidates alike.
John Binder is a reporter for Breitbart News. Email him at firstname.lastname@example.org. Follow him on Twitter here.