As part of a worldwide staff reduction initiative, US aircraft manufacturer Boeing sent pink slips to as many as 180 workers at its engineering technology center in Bengaluru, according to a source cited by news agency PTI. Boeing employs around 7,000 people in India, a crucial market for the corporation that has been dealing with many challenges worldwide.

Boeing said last year that it was cutting around 10% of its personnel worldwide. Up to 180 employees at the Boeing India Engineering Technology Center in Bengaluru were let go in the December quarter of 2024 as part of the worldwide workforce reduction, according to the person with knowledge of the matter. Boeing did not issue a formal comment.

Why is Boeing firing workers?

According to the source, strategic changes were made that affected a small number of personnel without having an unfavorable effect on government operations or consumers. “Reductions in India have been more measured, with a clear focus on maintaining customer service, safety, and quality standards,” the source stated, adding that new jobs have been created in addition to the removal of certain ones. Complex, cutting-edge aerospace work is done at the Boeing India Engineering & Technology Center (BIETC) in Bengaluru and Chennai.

Boeing is losing money.

One of the company’s biggest investments outside of the United States is its engineering and technology campus in Bengaluru, which it owns entirely. According to its website, Boeing sources over USD 1.25 billion a year from a network of over 300 suppliers in India.

Following a crushing weeks-long strike by over 33,000 US West Coast workers that suspended manufacturing of the majority of its commercial planes, Boeing, under new CEO Kelly Ortberg, is attempting to resume production of its best-selling 737 MAX. A major source of income for the business, the MAX raised almost $24 billion in late October to support its fragile finances and preserve its investment-grade rating after rating agencies expressed concern.