The Boeing company logo is displayed on the floor of the New York Stock Exchange during morning trading on September 04, 2024 in New York City. Photo by Michael M. Santiago / GETTY IMAGES NORTH AMERICA / Getty Images via AFP.
New York: US aviation giant Boeing on Monday announced it was making serious spending cuts, including considering furloughs and implementing a hiring freeze, as it responds to a factory worker strike in the northwestern United States.
"Our business is in a difficult period. This strike jeopardizes our recovery in a significant way and we must take necessary actions to preserve cash and safeguard our shared future," said Chief Financial Officer Brian West in a message to employees.
Talks between Boeing and striking factory workers will resume Tuesday under a federal mediator, the union said, after workers voted overwhelmingly to reject a proposal from the embattled aviation giant.
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.
On Monday, West said the company was taking the "necessary actions to preserve cash and safeguard our shared future."
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."
