Workers with picket signs were seen outside Boeing Co.’s manufacturing facility during a strike in Everett, Washington, on Friday, September 13, 2024. This event was documented by M. Scott Brauer for Bloomberg and Getty Images.
Boeing announced plans to furlough a significant number of its U.S. executives, managers, and other staff, attributing the decision to the ongoing machinist strike. CEO Kelly Ortberg conveyed this information to employees on Wednesday, indicating the company’s efforts to conserve cash amidst this challenging period.
A Boeing spokesperson confirmed that tens of thousands of employees would be affected by the furloughs, which follows a recent event where over 30,000 Boeing machinists in the Seattle area and Oregon rejected a new labor contract. The vote resulted in 96% of machinists opting to strike, with the action commencing just after midnight on Friday.
The plan for affected employees entails taking one week of furlough every four weeks as long as the strike persists. Ortberg and his executive team will also take pay cuts proportionate to the furloughs during this period.
Ortberg described the decision as tough but necessary for the company’s long-term sustainability, emphasizing the commitment to transparent communication and efforts to mitigate the hardship as the situation evolves.
Brian West, Boeing’s CFO, announced earlier in the week that the company would implement a hiring and raise freeze to reduce expenses. Additionally, “non-essential contractors” will be temporarily let go.
This report is part of an ongoing story, and further updates are anticipated.
