Airplane fuselages destined for Boeing’s 737 Max production facility are currently held at Spirit AeroSystems Holdings Inc., Wichita, Kansas. Following a strike by Boeing machinists now in its sixth week, Spirit AeroSystems announced it would furlough around 700 workers. This temporary furlough represents about 5% of Spirit’s U.S. workforce and impacts major facilities in Wichita. The strike began on September 13, following the machinists’ rejection of a labor agreement, significantly impacting Boeing’s financial stability and presenting a challenge for CEO Kelly Ortberg, who has been in his role for just over two months.
If the strike continues past November, Spirit may face deeper cuts, potentially leading to layoffs, according to spokesperson Joe Buccino. The affected workers, tied to Boeing’s 777 and 767 programs, have contributed to a significant inventory build-up, while efforts on these and the 737 Max programs are stalled due to the strike.
Boeing, meanwhile, is executing cost-cutting measures, including reducing its workforce by 10% and phasing out its 767 commercial production by 2027. Additionally, the 777X jet rollout has been delayed to 2026. The company is exploring options to raise debt or equity to enhance its liquidity. Boeing’s acquisition of Spirit is anticipated to conclude by mid-2025.
Original Story https://www.cnbc.com/2024/10/18/spirit-aerosystems-furloughs-700-workers.html
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