Spirit AeroSystems is considering hundreds more furloughs or layoffs if the ongoing strike by Boeing machinists extends beyond November 25.
The company, which supplies key aircraft components such as fuselages for Boeing’s 737 MAX, is facing increased pressure as the strike reaches its sixth week.
Impact of the Strikes
Spirit has already been preparing to temporarily furlough around 700 workers at its facilities in Wichita, Kansas, for 21 days starting next week.
However, if the work stoppage continues beyond late November, Spirit may be forced to implement even deeper cuts.
According to Spirit spokesman Joe Buccino, no final decision has been made yet regarding additional layoffs or furloughs.
Effects of Boeing’s Strike
The strike, which involves more than 32,000 Boeing machinists across locations in the Puget Sound region, Oregon, and other areas, began on September 13.
Workers have rejected two tentative agreements, with the latest proposal being voted down by 64 percent.
The strike has halted production of several key aircraft models, including Boeing’s best-selling 737 MAX and various wide-body planes.
Boeing’s supply chain is facing immense strain as the strike continues.
Suppliers like Spirit, which have spent years rebuilding their workforce following disruptions caused by the COVID-19 pandemic, are now grappling with new challenges.
Airbus, another major player in the aerospace industry, is also experiencing similar supply chain pressures.
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Financial Challenges at Spirit AeroSystems
Adding to the complications, Spirit AeroSystems reported a third-quarter net loss of $477 million—more than double the loss recorded in the same period a year ago.
The company’s cash reserves are dwindling, and further furloughs or layoffs could exacerbate its financial difficulties.
The situation comes as Boeing moves forward with plans to acquire Spirit AeroSystems, a deal expected to close next year.
Boeing’s new CEO, Kelly Ortberg, has emphasized that reaching an agreement with striking machinists is a top priority, and the union has expressed its readiness to resume negotiations.
