Boeing Furloughs Thousands of Employees Due to Ongoing Strike
Ongoing Machinists' Strike Impacts Boeing Operations
Boeing, the US-based aerospace giant, has initiated a temporary furlough affecting thousands of its employees. This decision arrives as the ongoing machinist strike significantly disrupts the company's operations. CEO Kelly Ortberg confirmed this development, stating that furloughs will affect tens of thousands of employees across various roles.
Details of the Furlough Plan
The furloughs come shortly after over 30,000 machinists from Boeing's Seattle and Oregon facilities voted overwhelmingly against a new labor contract. A staggering 96% supported the strike, which commenced just after midnight last Friday. Negotiations between Boeing and the union are ongoing, yet no resolution has materialized.
Financial Consequences for Boeing
Boeing's CFO Brian West recently announced a hiring freeze and the suspension of raises as part of the company’s cost-cutting strategy, with estimates indicating that the strike may cost Boeing over $100 million in revenue daily until a resolution is reached. With accumulated debt exceeding $60 billion and ongoing quality and safety issues, the company's financial health hangs in the balance.
Critical Operations Continue
Despite these challenging circumstances, Ortberg assured stakeholders that activities crucial for safety, quality, and customer support, such as production of 787 Dreamliners in South Carolina, will be prioritized. The ramifications of the strike extend beyond Boeing, affecting suppliers and the broader economic landscape.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.