Boeing Freezes Hiring, Considers Furloughs amid Ongoing Labor Strike

Sponsored Ad

Boeing has implemented a hiring freeze and is considering temporary furloughs in response to a labor strike involving over 30,000 workers at its West Coast factories. Now in its fourth day, the strike has disrupted production on Boeing’s 737, 767, and 777 aircraft programs. As a result, Boeing has halted most supplier purchase orders, excluding the 787 Dreamliner.

Boeing CFO Brian West communicated to employees that the strike poses a challenge to the company’s financial recovery, which has led to the decision to take steps to manage costs and preserve cash flow. The company is also dealing with production challenges and $60 billion in debt.

Negotiations between Boeing and the International Association of Machinists and Aerospace Workers (IAM) are scheduled to resume, with federal mediators facilitating discussions. The union previously voted down a contract that included a 25% pay raise over four years, citing the removal of an annual performance bonus as a key concern.

Analysts project that the ongoing strike could result in up to $3 billion in lost revenue if it continues for several weeks. This is the eighth strike involving Boeing and the IAM, with previous strikes lasting up to 57 days.