Spirit Aero Furloughs 700 Amid Boeing Production Halt

Spirit AeroSystems is furloughing 700 workers due to an ongoing strike at Boeing affecting production of the 767 and 777 jets. The furlough is part of broader cost-cutting measures. If the strike continues, more layoffs may occur. Boeing has faced multiple crises impacting its supply chain.

Spirit AeroSystems announced on Friday that it will furlough 700 workers for 21 days amid an ongoing strike at Boeing, which has affected production of its 767 and 777 jets. The decision, reported by Reuters, impacts employees working on widebody jet programs during a strike by over 33,000 U.S. West Coast factory workers since September.

The company has already implemented various cost-cutting strategies, including a hiring freeze and travel restrictions, citing lack of storage for the fuselages as part of the challenge. 'We recognize the impact this has on our valued teammates and their families, and we are committed to supporting them through this period,' said Spirit CEO Pat Shanahan.

Boeing's extended crisis over the last six years, compounded by the pandemic and quality issues, continues to strain suppliers like Spirit, which reported a spike in quarterly losses and has scaled back 737 MAX fuselage production. With a drawn $350-million loan facility, further financial assistance may be necessary, sources indicate.

(With inputs from agencies.)