A Boeing 737 fuselage is installed on a railcar at the Spirit AeroSystems plant in Wichita, Kansas, on July 1, 2024.
Nick Oxford | Bloomberg | Getty Images
spirit aerospace systems inc. Are considering furloughing or laying off hundreds of employees if boeing company The machinists’ strike continues beyond November 25, a company spokesperson told CNBC on Thursday.
Boeing machinists’ strike enters sixth week 64% voted against new proposed labor contract On Wednesday, it extended a shutdown that has halted production of most of Boeing’s planes at plants centered in the Seattle area.
Spirit, which makes fuselages and other major components for Boeing’s best-selling 737 Max, has been preparing to furlough about 700 workers at its plant in Wichita, Kansas. The 21-day furlough may begin next week.
Spirit spokesman Joe Buccino said further layoffs will be made in addition to the furloughs, but no decisions have been made yet.
Spirit’s consideration of additional furloughs shows how a lengthy strike is straining an already fragile aerospace supply chain. Boeing suppliers have largely been hesitant to cut jobs, in part because they have spent years rebuilding their workforces after the Covid-19 pandemic. Airbus faces similar supply chain pressures.
More than 32,000 Boeing mechanics are employed in the Puget Sound region of Oregon and other locations get off work on September 13, after rejecting a previous interim agreement.
Boeing is acquiring Spirit, with the deal expected to close next year. Spirit has been burning cash and on Wednesday reported a third-quarter net loss of $477 million, more than double the same period last year.
Kelly Ortberg, Boeing’s new CEO Make a deal with a Seattle area mechanic Ending the strike is a top priority and unions say they are eager to get back to the bargaining table.
