Boeing to Lay Off More than 12K Americans While Expanding in India

Fact:  Due to unions, it is much cheaper to build planes in India that Seattle.  So, when Boeing needs to makes cuts do they increase costs by staying in Seattle or move to India?  This is why Boeing started plants in Right to Work States on the East Coast, to save labor costs.  Now they are moving out of the U.S.

“On Wednesday, Boeing executives announced their plans to cut more than 12,000 American jobs over the next few months — including 5,520 voluntary layoffs and 6,770 involuntary layoffs set for the next three weeks.

At the same time, Boeing India executives say they are planning for a major expansion:

“Over the next couple of years, we expect Boeing’s India presence to be the largest outside of the US. Boeing has been a proud partner with India for more than 75 years, and we’re just getting started. We want to contribute to the growth of India’s aerospace industry. That’s why we’re investing in commercial and defence across the development of aerospace technology, innovation, production capacity, supply chain, aerospace skilling centres, manufacturing and the modernisation of airport infrastructure and airspace,” Boeing India president Salil Gupte told [Times of India]. [Emphasis added]

Between government regulations, on energy, water, environment, health care costs and more, it is much cheaper for Boeing to operate in India than the United States.

Boeing to Lay Off More than 12K Americans While Expanding in India

John Binder, Breitbart,  5/27/20  

The Boeing Company is set to lay off more than 12,000 Americans in the midst of the Chinese coronavirus crisis while planning an expansion in India.

On Wednesday, Boeing executives announced their plans to cut more than 12,000 American jobs over the next few months — including 5,520 voluntary layoffs and 6,770 involuntary layoffs set for the next three weeks.

At the same time, Boeing India executives say they are planning for a major expansion:

“Over the next couple of years, we expect Boeing’s India presence to be the largest outside of the US. Boeing has been a proud partner with India for more than 75 years, and we’re just getting started. We want to contribute to the growth of India’s aerospace industry. That’s why we’re investing in commercial and defence across the development of aerospace technology, innovation, production capacity, supply chain, aerospace skilling centres, manufacturing and the modernisation of airport infrastructure and airspace,” Boeing India president Salil Gupte told [Times of India]. [Emphasis added]

…“We have been working towards skilling and upskilling Indian MSMEs as we’ve quadrupled our sourcing here from $250 million to $1 billion over the past few years. With thousands of MSMEs now getting into the aerospace sector, there is opportunity to do more,” Gupte added. [Emphasis added]

For years, Boeing has increasingly outsourced and offshored to India.

In the coming years, Boeing India executives say the corporation’s new Bengaluru, India, campus will get a $200 million boost and will be the largest Boeing facility outside the U.S. Simultaneously, Boeing employment in Washington state, alone, has been cut by more than 12,000 since 2013.

Boeing has had contracts with Indian firms HCL Technologies Ltd. and Tata Consulting Services (TCS), two of the largest H-1B visa IT outsourcers in the country.

The corporation’s work with HCL Technologies Ltd. outsourced American engineering jobs to H-1B foreign visa workers for sometimes as little as $9 an hour, according to various reports.

Boeing profits hugely from American taxpayer money. In 2017, the company noted that about 79 percent of its profits came from government contracts with the U.S. federal government. In 2018, Boeing saved $230 million in taxes thanks to tax breaks offered by Washington state.

About Stephen Frank

Stephen Frank is the publisher and editor of California Political News and Views. He speaks all over California and appears as a guest on several radio shows each week. He has also served as a guest host on radio talk shows. He is a fulltime political consultant.

Comments

  1. Really??? says

    What did the Democrats and Unions not learn in the past 4 months?

    They did not get it that making critical industries and skill too expensive that they go over seas puts the nation at risk for war and blackmail.

    There is always an end game result and this one is not good.

  2. Thanks Boeing…after the USA supported you AND your employees and poor management during the great recession. Thanks for the “Thank You” after our tax dollars saved your company. And NOW you lay off the very people who’s jobs would work toward economy building. Thanks for leaving it all behind and the families who stood by you for generations.
    I hope you lose all contracts on future work.

  3. JLSeagull says

    I looked and looked but couldn’t fine an explanation. What is an MSME, and Indian virus?

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