DALLAS: Boeing plans to freeze hiring and scale back journey and is contemplating non permanent layoffs to save lots of money in the course of the manufacturing unit staff’ strike that started final week, the corporate instructed staff Monday.
The corporate stated strikes, which embody diminished spending on suppliers, had been needed as a result of “our enterprise is in a tough interval.”
Chief Monetary Officer Brian West detailed 10 rapid cutbacks in a memo to staff.They embody a freeze on hiring throughout all ranges, pausing pay will increase for promotions, and stopping all journey that is not crucial.
“We’re additionally contemplating the tough step of non permanent furloughs for a lot of staff, managers and executives within the coming weeks,” West stated.
West stated Boeing’s enterprise is in a tough spot, and “This strike jeopardizes our restoration in a big means.”
About 33,000 staff represented by the Worldwide Affiliation of Machinists and Aerospace Employees started a strike early Friday. The walkout got here after staff rejected a proposal with pay raises of 25% over 4 years.
Boeing has misplaced greater than $25 billion for the reason that begin of 2019, and burned via $4.3 billion within the second quarter of 2024 alone because it stood poised to put up one other money-losing 12 months.
Stephanie Pope, the top of Boeing’s commercial-airplanes division, cited the corporate’s $60 billion in whole debt in urging blue-collar staff to simply accept the contract provide final week. She referred to as it the most effective provide Boeing had ever made – and it was endorsed by the union’s native president and negotiators.
However staff who’ve spoken out earlier than and for the reason that Thursday strike vote stated they need raises totaling no less than 40% and the restoration of bonuses that Boeing proposes to get rid of.
Further cost-cutting strikes spelled out within the chief monetary officer’s memo included eliminating first- and business-class service for anybody who does journey, and stopping spending on outdoors consultants.
West additionally stated Boeing plans to make “important reductions in provider expenditures” and can cease most provider buy orders associated to the 737, 767 and 777 airplane fashions.
The corporate stated strikes, which embody diminished spending on suppliers, had been needed as a result of “our enterprise is in a tough interval.”
Chief Monetary Officer Brian West detailed 10 rapid cutbacks in a memo to staff.They embody a freeze on hiring throughout all ranges, pausing pay will increase for promotions, and stopping all journey that is not crucial.
“We’re additionally contemplating the tough step of non permanent furloughs for a lot of staff, managers and executives within the coming weeks,” West stated.
West stated Boeing’s enterprise is in a tough spot, and “This strike jeopardizes our restoration in a big means.”
About 33,000 staff represented by the Worldwide Affiliation of Machinists and Aerospace Employees started a strike early Friday. The walkout got here after staff rejected a proposal with pay raises of 25% over 4 years.
Boeing has misplaced greater than $25 billion for the reason that begin of 2019, and burned via $4.3 billion within the second quarter of 2024 alone because it stood poised to put up one other money-losing 12 months.
Stephanie Pope, the top of Boeing’s commercial-airplanes division, cited the corporate’s $60 billion in whole debt in urging blue-collar staff to simply accept the contract provide final week. She referred to as it the most effective provide Boeing had ever made – and it was endorsed by the union’s native president and negotiators.
However staff who’ve spoken out earlier than and for the reason that Thursday strike vote stated they need raises totaling no less than 40% and the restoration of bonuses that Boeing proposes to get rid of.
Further cost-cutting strikes spelled out within the chief monetary officer’s memo included eliminating first- and business-class service for anybody who does journey, and stopping spending on outdoors consultants.
West additionally stated Boeing plans to make “important reductions in provider expenditures” and can cease most provider buy orders associated to the 737, 767 and 777 airplane fashions.
