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| Spirit AeroSystems |
Spirit AeroSystems, a major aerostructure manufacturer, has announced plans to furlough 700 employees as part of cost-cutting measures triggered by the ongoing Boeing strike. The strike, which began on September 13, has disrupted production and left Spirit with excessive inventory and insufficient storage capacity.
The furloughs are scheduled to begin on October 28 and will last for 21 days. They will affect workers in Spirit’s Wichita, Kansas facility, specifically those involved in manufacturing components for Boeing’s 767 and 777 aircraft programs. Spirit, a critical supplier for these jet programs, has warned that additional workforce reductions may follow if the strike extends beyond Thanksgiving in late November.
The strike involves over 32,000 Boeing employees, represented by the International Association of Machinists and Aerospace Workers (IAMAW), who walked out after rejecting a proposed agreement on wages and retirement benefits. Despite three rounds of mediated talks, negotiations have stalled, with both sides accusing each other of bad faith. Boeing withdrew its most recent offer on October 8, citing irreconcilable differences.
In response to the revenue impact, Spirit has implemented a hiring freeze and reduced overtime spending. Boeing, which is in the process of reacquiring Spirit, has also announced plans to cut 10% of its workforce and delay deliveries of its 777-9 widebody aircraft by a year, pushing the timeline to 2026.
This prolonged dispute highlights vulnerabilities in the aerospace supply chain, underscoring the significant interdependencies between manufacturers and suppliers.
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