The recent wave of furloughs linked to Boeing’s ongoing machinists’ strike is not happening at Boeing (BA). According to Reuters reports, Spirit Aerosystems (SPR), a fuselage supplier, is the one implementing the furloughs, sending approximately 700 workers home for a period of 21 days.
Key Points:
– Spirit spokesperson Joe Buccino stated that these furloughs are necessary due to running out of storage space for 767 and 777 aircraft.
– Spirit was a former subsidiary of Boeing, which was spun out in 2005 and reacquired earlier this year for $8.3 billion.
– Boeing and Spirit have a history of working together, but issues arose when Boeing attempted to bypass production delays using “traveled work,” leading to safety concerns.
– Former Boeing CEO Dave Calhoun emphasized the importance of reducing traveled work in the deal with Spirit, which is now impacted by Boeing’s ongoing machinists’ strike.
In addition to Boeing’s own announced layoffs and furloughs affecting 10% of its workforce, companies upstream from Boeing’s operations, like Spirit Aerosystems, are beginning to feel the repercussions as well. This situation highlights the interconnectedness of the aerospace industry and the ripple effects of disruptions within major companies like Boeing.
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