Some Boeing employees might want to start thinking about a lifestyle in Arizona. The company announced earlier this week they’re moving one of their business support units to Mesa by 2020.
The unit, Shared Services Group (SSG), has about 3,000 employees who are responsible for things like hiring, payroll and other human-resource tasks.
Scott Hamilton is an aerospace analyst with Leeham Co., LLC. He said a possible reason for the relocation is to cut costs by paying people less.
“I think it’s just going to wind up getting rid of A-scale type wages and getting new employees at lower wages down there,” Hamilton said.
Boeing said this plan will help them remain successful with competitors.
But why Arizona specifically?
Hamilton said he doesn’t know. He said from a livability and aerospace stand point the location isn’t exactly enticing.
Boeing will reportedly only offer relocation packages to about 5-10 percent of the SSG workers, according to the Seattle Times. In a written statement, the company said it’s too early to say how many people will be impacted by the move.