by Lacey Pfalz
Last updated: 11:00 AM ET, Fri October 18, 2024
Spirit AeroSystems, an aerospace company that works closely with Boeing to build aircraft, today announced it was furloughing 700 of its employees due to the ongoing strike by Boeing employees.
The news was shared by CFO Irene Esteves, who said that the furlough will begin on October 28 for 700 employees working on the Boeing 767 and 777 programs. There is also a hiring freeze and travel and overtime restrictions now in place at Spirit AeroSystems.
The company noted that should the strike by the 33,000 members of the International Association of Machinists and Aerospace Workers at Boeing continue into November, the company would be required to furlough more workers and introduce layoffs.
"This difficult step was necessary given our limited storage capacity for 767 and 777 units," said Pat Shanahan, CEO of Spirit AeroSystems. "We recognize the impact this has on our valued teammates and their families, and we are committed to supporting them through this period."
Boeing’s machinists went on strike in mid-September, with an estimated loss of some $500 million each week. With the strike, its many safety concerns and delays in its aircraft deliveries, the third quarter finances are predicted to be brutal, with an anticipated loss of $10 per share.
A group of lawmakers sent a letter to Boeing and the machinists’ union hoping for a quicker end to the strike, which could have detrimental impacts on the aviation industry.
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