Boeing has revealed that it is implementing significant spending reductions, including a hiring freeze and the possibility of furloughs, as it grapples with an ongoing strike by factory workers in the northwestern United States.
Chief Financial Officer Brian West, in a message to employees, stated, “Our business is in a difficult period. This strike jeopardizes our recovery in a significant way and we must take necessary actions to preserve cash and safeguard our shared future.”
The strike, which has halted operations at two key assembly plants for the 737 MAX and 777 models in the Puget Sound region, is further complicating Boeing’s efforts to stabilise its financial position. Discussions between Boeing and the striking workers are set to resume on Tuesday, under the supervision of a federal mediator, after union members decisively rejected a recent offer from the company.
In response to the strike, Boeing has suspended hiring across all levels of the business and halted some pay raises. The company is also curbing non-essential travel, limiting it strictly to critical customer, programme, regulatory, and supply chain activities. All business- and first-class travel has been cut.
Non-essential capital expenditures have also been paused, with West noting that the company may have to make the difficult decision of temporarily furloughing employees, managers, and executives in the coming weeks.