Boeing considers layoffs to save cash amid major strike by machinists

Boeing plans to freeze hiring and reduce travel and is considering temporary layoffs to save cash during the factory workers’ strike that began last week, the company told employees Monday.

Chief Financial Officer Brian West detailed 10 immediate cutbacks in a memo to employees. They include a freeze on hiring across all levels, pausing pay increases for promotions, and stopping all travel that isn’t critical.

The company said the company was taking the “necessary actions to preserve cash and safeguard our shared future.” “We are also considering the difficult step of temporary furloughs for many employees, managers and executives in the coming weeks,” West said.

West said Boeing’s business is in a difficult spot, and “This strike jeopardizes our recovery in a significant way.”

About 33,000 workers represented by the International Association of Machinists and Aerospace Workers began a strike early Friday. The walkout came after workers rejected an offer with pay raises of 25% over four years.

Boeing has lost more than $25 billion since the start of 2019, and burned through $4.3 billion in the second quarter of 2024 alone as it stood poised to post another money-losing year.

The strike has shuttered two major plane assembly plants for the 737 MAX and 777 in the Puget Sound region, further delaying the financially stressed company’s turnaround efforts.

The hiring freeze affects “all levels” of employees, and also pauses some forms of pay raises.

It also suspends “any travel that is not for critical customer, program, regulatory or supply chain activity,” while stopping all business- and first-class travel.

All non-essential capital expenditures will also be suspended.

The CFO said the company was “considering the difficult step of temporary furloughs for many employees, managers and executives in the coming weeks.”

With inputs from agencies.