Boeing Faces Severe Financial Challenges Amid Worker Strike

Boeing is implementing drastic measures such as a hiring freeze and cutting supplier expenditures after 33,000 employees went on strike. The strike significantly threatens Boeing's financial recovery, leading the company to consider temporary furloughs and suspend non-essential capital and facility expenditures.

Boeing is pausing hiring and taking sweeping steps to conserve cash after about 33,000 workers went on strike on Friday, including considering temporary furloughs for many employees, managers, and executives in the coming weeks. Boeing Chief Financial Officer Brian West said, "The strike jeopardizes our recovery in a significant way, and we must take necessary actions to preserve cash and safeguard our shared future."

In addition to a hiring freeze across Boeing at all levels, the planemaker is stopping most employee travel, suspending non-essential capital expenditures and facilities spending, and planning "significant reductions in supplier expenditures" along with halting the issuance of most supplier purchase orders for the 737, 767, and 777 programs.

(With inputs from agencies.)