Boeing Worker Strike Impact: Major supplier announces furloughs, warns layoffs may be necessary

The current furloughs are part of broader cost-saving measures, which also include a hiring freeze and restrictions on travel and overtime.Photo bySven PiperonUnsplash

Spirit AeroSystems (NYSE: SPR) has announced a 21-day furlough for approximately 700 employees working on the 767 and 777 programs, effective October 28. The decision comes in response to the ongoing strike by Boeing employees represented by the International Association of Machinists and Aerospace Workers, which began on September 13.

CFO Irene Esteves informed employees of the furloughs this morning, emphasizing that if the strike extends beyond November, the company may face financial pressures necessitating further layoffs and additional furloughs. The current furloughs are part of broader cost-saving measures, which also include a hiring freeze and restrictions on travel and overtime.

Spirit has accumulated a significant inventory buffer for the 767 and 777 programs, leaving no room for additional storage. CEO Pat Shanahan stated, "This difficult step was necessary given our limited storage capacity for 767 and 777 units. We recognize the impact this has on our valued teammates and their families, and we are committed to supporting them through this period."