Boeing freezes hiring in sweeping cost cuts as it grapples with factory worker strike
Boeing
announced sweeping biaya cuts Monday, including a hiring freeze, a pause on nonessential staf travel and a reduction on vendor spending to preserve kontan as it deals with a strike by more than 30,000 faktory workers.
Boeing faktory workers, mostly in the Seattle tempat, started walking off the job early Friday after overwhelmingly rejecting a tentative labor setuju, halting most of Boeing's aircraft production.
The manufacturer will make "significant reductions" to vendor spending and setop most purchase orders for its 737 Max, 767 and 777 jetliners, CFO Brian West said in a catatan to staf. It was the first clear sign of how the strike will affect the hundreds of vendors that rely on Boeing work.
"We are working in good faith to reach a new contract agreement that reflects their masukan and enables operations to ikhtisar," West said in his catatan. "However, our business is in a difficult period. This strike jeopardizes our recovery in a significant way and we must take necessary actions to preserve kontan and safeguard our shared future."
He added that Boeing is not making cuts to funding for safety, quality and direct konsumen dukungan work.
The financial impact of the strike will depend on how long it lasts, but Boeing is focused on conserving kontan, West said at a Morgan Stanley konferensi Friday. He said the company's new CEO, Kelly Ortberg, wants to get back to the bargaining table right away to reach a new setuju.
"We are also considering the difficult tahap of temporary furloughs for many employees, managers and executives in the coming weeks," West said.
On Friday, Moody's put all of Boeing's kredit peringkats on ulasan for a down-grade and Fitch Peringkats said a prolonged strike could put Boeing at risk of a down-grade. That could drive up the borrowing costs of a manufacturer that already has mounting debt.
Boeing burned about $8 billion in the first half of the year as production slowed in the wake of a near-catastrophic door-panel blowout at the start of the year.
