Boeing's Cost-Saving Measures Amid Factory Workers' Strike

Boeing plans to freeze hiring, reduce travel, and consider temporary layoffs to conserve cash amidst a factory workers' strike. The company announced reduced spending on suppliers as business faces a challenging period. CFO Brian West highlighted 10 immediate cutbacks and warned that the strike jeopardizes Boeing's recovery.

Boeing announced plans to freeze hiring and reduce travel to manage cash flow during the factory workers' strike that started last week.

The company informed employees on Monday that these measures, including cutting expenses on suppliers, are essential due to the business facing significant challenges. Chief Financial Officer Brian West outlined 10 immediate spending reductions in a memo to employees.

"We are also considering the difficult step of temporary furloughs for many employees, managers, and executives in the coming weeks," West stated. He further mentioned that Boeing's business is in a tough position, adding that "This strike jeopardizes our recovery in a significant way." About 33,000 workers, represented by the International Association of Machinists and Aerospace Workers, went on strike early Friday after rejecting an offer that included a 25 per cent pay raise over four years.

(With inputs from agencies.)