Boeing freezes hiring and executives' first-class travel as massive strike continues
Boeing Implements Cost-Cutting Measures Amid Strike #
A major aerospace manufacturer is taking significant steps to reduce costs in response to an ongoing strike by union workers. The company’s Chief Financial Officer announced several measures aimed at preserving cash and safeguarding the company’s future.
The temporary measures include:
- A freeze on hiring
- Restrictions on non-essential travel
- Potential furloughs for employees, managers, and executives
- Limitations on first-class and business travel, including for executives
- Reduction in charitable contributions
- Cessation of catering at company facilities
- Pause on participation in trade shows and events
- Suspension of pay increases for promotions
The CFO stated that the strike “jeopardizes our recovery in a significant way,” necessitating these actions.
The company is also planning to reduce spending with its suppliers, including stopping the issuance of most purchase orders for certain aircraft programs.
This comes as the company faces financial challenges, having lost billions of dollars since 2019. Credit rating agencies have indicated that a downgrade of the company’s credit rating to junk bond status is possible.
The strike began after union members overwhelmingly rejected a proposed deal and voted to walk off the job, shutting down production at one of America’s largest manufacturers and exporters.
Negotiations between the union and the company are scheduled to resume with a federal mediator present.