Boeing Layoffs: US-Based Aeroplane-Maker Temporarily Lays Off Employees To Save Costs Amid Strike Involving 30,000 Workers
Boeing has announced temporary layoffs amid cost-cutting measures as factory workers strike over labor disputes. The strike, involving 30,000 machinists, has halted production of the Boeing 737 series. Boeing is in talks with union leaders to resolve the issue while aiming to preserve cash and maintain its credit rating.
Arlington County, September 17: Global aerospace company Boeing has announced a temporary layoff round amid cost-cutting measures. Boeing aims to save cash as factory workers (machinists) recently began their strike. The aerospace company has reportedly frozen the hiring process and considered temporary layoffs an ideal solution.
Boeing layoffs will reportedly help the company reduce spending on suppliers, pause the increases for promotion, and even stop all unnecessary travel to save costs. Boeing Chief Financial Officer (CFO) Brian West announced the layoff to immediately cut ten people from the workforce by handing over a memo. According to reports, the latest strike by 30,000 machinists put the company in a difficult situation. The angry workers stopped the production of the Boeing 737 series. The aeroplane maker and the union leadership underestimated the anger among the union workers, with 96% supporting the cause. Amazon Asks Employees To Return to Office 5 Days a Week Starting January 2, 2025.
Boeing is reportedly in conversation with the workers and union and trying to negotiate a solution. The company executives are burdened with finding a solution to contain the work stoppage and resume fresh talks over the matter. In a letter sent to the employees, CFO Brian West highlighted that the strike had jeopardised the company's recovery, and it was compelled to take necessary action to preserve cash and safeguard the shared future. Tupperware To File for Bankruptcy Amid Debts and Declining Demand, Seeks Court Protection Amid Breached Terms.
West said that Boeing's first priority was to retain its credit rating and the decision to stop placing orders on almost all the parts of Boeing jetliner programmes except the 787 Dreamliner, said reports. The Boeing layoffs are termed "temporary" and cut costs and save more amid the ongoing worker's strike. However, some company executives warned about a cycle of departure as the company continues to struggle and attract new workers and engineers.
(The above story first appeared on LatestLY on Sep 17, 2024 11:51 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).