From a widespread worker strike, to falling share prices, and some planes that whistleblowers claim could “break apart,” Boeing can’t seem to get back on track. The global diversity, equity and inclusion (DEI) department of Boeing has been dissolved. This is part of the revamp happening at the company under Kelly Ortberg, the new CEO of Boeing.
(Image Credit: boeing)
Boeing U.S. West Coast factory workers were voting on an improved contract offer on Monday that could end a seven-week strike and restart most jet production at the troubled planemaker.
Boeing DEI team layoffs
The move comes as CEO Kelly Ortberg, who joined in August, tries to cut costs, with plans to reduce headcount by 10%.
Sara Liang Bowen, a vice president of Boeing, who was shouldering the responsibility of leading the DEI team has also quit the company a couple of days ago. The rest of the team will be absorbed by another HR department.
“…behind every [DE&I] effort there has been a person: An unheard voice, an idea waiting to bloom. The people make the company what it is, and it’s the people who will restore it to a state of trusted excellence,” Bowen said in a LinkedIn post announcing her departure.
Boeing DEI department
Conservative activists including Robby Starbuck and Elon Musk blame DE&I for Boeing’s problems. Texas’ attorney general, Ken Paxton, believes the company’s efforts to diversify its suppliers have resulted in safety issues, requesting that Boeing share the details of its DE&I efforts with a Texas court as part of an investigation into its manufacturing practices.
Boeing claimed that, despite disbanding its DE&I team, inclusion efforts will continue. However, it appears to have walked back its pledge to have 20% Black representation by 2025, and has been leaning into language often used by anti-DE&I activists.
Boeing layoffs at top level
Since arriving at the company in August, Ortberg has been working to save Boeing’s profits by introducing cost-cutting measures. Boeing is on pace to burn through $14B by year’s end. It is facing a further setback from the strike of more than 30,000 machinists, which has entered its seventh week.
Ortberg also confirmed that the layoffs would impact white-collar employees, such as engineers and non-union salaried workers, including vice presidents.
Boeing’s DEI issues
Some have questioned and found issues with Boeing’s DEI department. Whether Boeing’s DEI policy required racial quotas in hiring or when deciding to promote an employee, but the company dismissed the claims and reiterated its diversity and inclusion goals in a court filing last month.
“Boeing remains committed to recruiting and retaining top talent and creating an inclusive work environment where every teammate around the world can perform at their best while supporting the company’s mission,” Boeing said in a statement. The company added that it doesn’t tolerate discrimination, and runs on “a merit-based performance system with procedures aimed at encouraging an equality of opportunity, not of outcomes.”
