As 33,000 workers continue to strike in the Pacific Northwest, Boeing announced the possibility of layoffs, a hiring freeze and other major cost-cutting measures Monday.
The message from Executive Vice President and Boeing Chief Financial Officer Brian West said as the contract negotiations continue, the strike has led the company to take actions to preserve cash and protect the future of the company.
After a listing major cost-cutting measures, at the bottom of the news release West mentions the possibility of layoffs, leaving the number, timeline and certainty up in the air.
“We are also considering the difficult step of temporary furloughs for many employees, managers and executives in the coming weeks,” he said. “I know that these actions will create some uncertainty and concern, as well as many questions. We’ll be sharing additional information in the coming days as we have detailed guidance on implementation of these measures.”
Among the major cuts noted in the news release are:
- A hiring freeze for all levels of the company and pausing pay raises related to executive and management promotions.
- Travel that is not necessary for “customer, program, regulatory or supply chain activity” will be stopped.
- Ending first and business class flights.
Per the news release, the rest of the actions are, as written:
- Suspending non-essential capital expenditures and facilities spending.
- Suspending outside consultant spend and temporarily releasing non-essential contractors.
- Pausing charitable and other contributions, and advertising and marketing expenditures.
- Reducing company participation in airshows, tradeshows and special events.
- Pausing employee recognition and team event spending.
- Stopping catered meal and food services at Boeing facilities unless customer related.
- Cancelling any team off-site meetings. On-site meetings that require travel should be made virtual.
West also said the company will be spending less with suppliers for the 737, 767 and 777 programs.
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