Seattle, September 17, 2024 – In response to the ongoing strike by its largest union, Boeing has implemented a series of cost-cutting measures, including a hiring freeze, layoffs, and significant restrictions on business travel. The company’s Chief Financial Officer, Brian West, announced these actions on Monday evening, according to a report from Reuters.
The strike, led by the International Association of Machinists (IAM), which represents around 33,000 employees, began on September 13. It primarily affects Boeing’s facilities near Seattle, where the company manufactures its top-selling models, the 737 and 777 aircraft. The strike has created a serious risk to Boeing’s recovery plans, West said.
Cost-Cutting Measures
In addition to halting new hires and laying off staff, Boeing has announced several other measures, such as restricting executives from booking business or first-class flights, and freezing all pay raises associated with promotions. The company will also limit its participation in aerospace exhibitions.
Before the strike, Boeing was already struggling with production delays, particularly for its 737 model, due to disruptions in its supply chain and heightened regulatory scrutiny. The delays have worsened due to increased pressure from regulators following a 737-9 emergency landing in January, which occurred after a side panel near the emergency exit detached shortly after takeoff.
Boeing’s Challenges
The strike comes at a time when Boeing had committed to ramping up production by the end of the year. The company has faced significant challenges, including issues in its supply chain and slower production rates due to regulatory concerns. Boeing’s recovery plans, which aim to boost output, are now at risk due to the ongoing work stoppage.
Boeing’s financial recovery could face further hurdles as the company navigates the consequences of the strike, supply chain disruptions, and regulatory pressures.
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Boeing strike, cost-cutting measures, layoffs, production delays, 737 model, regulatory scrutiny, supply chain issues
