Spirit Aero to furlough 700 workers for 21 days due to Boeing strike

Published On Oct 18, 2024, 9:46 AM

Spirit AeroSystems announced it will furlough 700 workers for 21 days due to a prolonged strike at Boeing affecting its operations. The furloughs impact those working on Boeing's 767 and 777 jet programs, with production halted. Spirit AeroSystems has previously implemented cost-cutting measures like a hiring freeze and travel restrictions. The company anticipates additional layoffs and furloughs if the strike continues beyond November. Furloughs reflect broader challenges in the aerospace supply chain amid Boeing's struggles to ramp up production.

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The ongoing strike at Boeing is significantly impacting Spirit AeroSystems' operations and financial stability. The workforce reduction could hinder production capabilities in the near term, especially if the strike doesn't resolve soon. Consequently, Spirit AeroSystems, while having a strong order book after the pandemic, may face short-term hurdles regarding cash flow and profitability, affecting investor sentiment.

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