Boeing is freezing recruitment and drawing up plans to furlough “many” employees as the aerospace giant scrambles to curb spending after tens of t

Boeing crafts plan to furlough ‘many’ employees as workers strike for higher pay

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2024-09-16 18:00:04

Boeing is freezing recruitment and drawing up plans to furlough “many” employees as the aerospace giant scrambles to curb spending after tens of thousands of its workers went out on strike.

Warning that the industrial action “jeopardizes our recovery in a significant way”, the US planemaker said it would pause most employee travel and suspend non-essential capital expenditures.

About 33,000 Boeing workers walked off the job early on Friday after voting overwhelmingly to strike for higher pay. The company’s new CEO, Kelly Ortberg had pleaded with workers not to go on strike – the first since 2008 – before the vote.

Brian West, chief financial officer, said in a memo to staff that Boeing is now “considering the difficult step of temporary furloughs for many employees, managers and executives” over the coming weeks.

“Our business is in a difficult period,” West said. “This strike jeopardizes our recovery in a significant way and we must take necessary actions to preserve cash and safeguard our shared future.”