Spirit Aero Systems announced Boeing plans to furlough 700 employees for 21 days on Friday as the company's employee strike continues. Hourly direct, support and administrative employees at the company in Wichita, Kansas, will face a suspension of paid employment on October 28th.
“Given the pressures from our customers, we are implementing additional cost containment and employee measures,” said CFO Irene Esteves. I wrote to employees. “In particular, our 767 and 777 programs do not have the storage capacity necessary to continue production of new aircraft.”
Estevez added that if the labor dispute between Boeing and the International Association of Machinists (IAM) extends beyond Thanksgiving, additional employee measures, such as furloughs or layoffs, may be necessary. Ta.
Spirit Aero's assets are significantly decreased Plans will be made to recover losses in the second quarter.
In cost-cutting efforts, the company implemented a hiring freeze, reduced overtime, and cut non-personnel costs by 15%, in addition to cutting marketing and advertising costs.
“We recognize the impact this is having on our valued teammates and their families, and we are committed to supporting them through this period,” said Pat Shanahan, CEO of Spirit AeroSystems. We will work on it.”
Spirit Aero has faced negative fallout from a year filled with frustrations with Boeing, including scrutiny from lawmakers over disagreements with employees and an investigation by the Federal Aviation Administration after a series of crashes.
