In response to the ongoing Boeing employee strike, Spirit AeroSystems has now reportedly announced that it intends to furlough 700 employees for 21 days starting on Friday.
On October 28, the company’s hourly direct, support functions, and management employees in Wichita, Kansas will experience a temporary cessation of paid employment.
“Given customer pressures, we are implementing additional cost containment measures and workforce actions. On our 767 and 777 programs, in particular, we do not have storage capacity necessary to continue producing new units.” CFO Irene Esteves noted.
Esteves further stated that if the labor dispute between Boeing and the International Association of Machinists (IAM) persists beyond Thanksgiving, additional workforce actions, such as furloughs and redundancies, may be necessary.
In the second quarter, Spirit Aero’s holdings experienced a significant decline, necessitating the development of a strategy to mitigate its losses.
The company has implemented a hiring moratorium, eliminated overtime, and reduced non-labor spending by 15% in order to reduce costs.
Additionally, marketing and advertising expenditures have been eliminated.
Spirit Aero has experienced the adverse consequences of a year marked by numerous complaints against Boeing, such as congressional scrutiny of its treatment of employees and an investigation by the Federal Aviation Administration in response to a series of accidents.
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