Aircraft Industry Turmoil: Supplier Furloughs 700 Workers Amid Boeing Strike
The ongoing strike by machinists at Boeing has entered its sixth week, and the ripple effects are being felt across the industry. Spirit AeroSystems, a major supplier to Boeing, has announced that it will be furloughing around 700 workers in the United States. This move accounts for approximately 5% of Spirit’s domestic workforce and is a direct result of the strike, which has brought production to a standstill.
Boeing’s Financial Strains Deepen
The strike, which began on September 13, has already had a significant impact on Boeing’s finances. With over 32,000 workers walking off the job, the company’s losses are mounting. CEO Kelly Ortberg, who took the reins just two months ago, is facing a daunting task in getting the company back on track. To make matters worse, the strike has also led to a delay in the production of the 777X wide-body jet, which is now expected to debut in 2026.
Spirit AeroSystems Considering Deeper Cuts
The temporary furloughs at Spirit AeroSystems are set to last for 21 days, but the company is already considering deeper cuts if the strike continues beyond November. “If the strike continues beyond November, we will have to implement layoffs and additional furloughs,” said Spirit spokesman Joe Buccino. This move could have a significant impact on the company’s workforce and could lead to further financial strain.
Boeing’s Drastic Measures
In an effort to slash costs, Boeing has announced a series of drastic measures, including cutting its workforce by 10%, or around 17,000 people. The company is also ending 767 commercial production when orders are fulfilled in 2027. Additionally, Boeing is in the process of raising debt or equity to increase liquidity, a move that could have significant implications for the company’s future.
The Impact on Workers
The furloughs at Spirit AeroSystems will affect workers assigned to the 777 and 767 programs for Boeing, for which Spirit has built up “significant inventory.” Workers on Boeing’s bestselling 737 Max are not affected, but work on all three programs is currently stalled due to the strike. The ongoing uncertainty is likely to cause significant stress for workers across the industry.
A Challenging Road Ahead
As the strike continues, both Boeing and Spirit AeroSystems face a challenging road ahead. With production at a standstill and financial losses mounting, it remains to be seen how the companies will recover from this setback. One thing is certain, however – the ongoing turmoil in the aircraft industry will have far-reaching consequences for workers, investors, and the economy as a whole.
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