Boeing Furloughs Tens of Thousands Amid Machinist Strike

Boeing will temporarily furlough tens of thousands of US-based employees due to a machinist strike halting production of key aircraft models. The company faces financial strain with $60 billion of debt and a 40% stock drop this year. Union negotiations continue amid supplier concerns.

Boeing announced on Wednesday that it will temporarily furlough tens of thousands of employees following a machinist strike that began last Friday, affecting the production of the 737 MAX and other aircraft models. CEO Kelly Ortberg informed employees via email that selected workers would experience one-week furloughs every four weeks as the strike continues.

Ortberg, along with other Boeing leaders, will also take pay reductions during the strike. The company is preparing to handle a potentially prolonged dispute that could significantly impact its finances. Analysts warn that an extended labor battle might cost Boeing billions and further strain its financial standing.

The machinist strike, the first since 2008, has led to a freeze in hiring and halts in most order placements, affecting Boeing's vast supplier network. With Boeing's share price down 40% this year, the company is under intense pressure to resolve the labor conflict amid ongoing mediation talks.

(With inputs from agencies.)