Welcome to Extreme Investor Network, where we bring you unique and valuable insights on the latest business news. Today, we’re diving into the impact of the Boeing machinists’ strike on Spirit AeroSystems and the broader aerospace supply chain.
Spirit AeroSystems, a key supplier for Boeing, is facing tough decisions as the strike by Boeing machinists threatens to drag on. If the strike extends beyond Nov. 25, Spirit is considering furloughs or layoffs of hundreds more employees. This comes on the heels of preparations to temporarily furlough about 700 workers in its Wichita, Kansas, facilities.
The strike, which has already entered its sixth week, has halted production of most of Boeing’s aircraft and is putting pressure on the aerospace supply chain. Suppliers like Spirit have been hesitant to cut staff due to efforts to rebuild their workforce after the challenges of the Covid-19 pandemic. Airbus is also feeling the impact of supply chain disruptions.
Boeing, in the process of acquiring Spirit, is keen on reaching a deal with its machinists to end the strike. The company’s new CEO Kelly Ortberg has prioritized resolving the labor dispute. Meanwhile, Spirit reported a third-quarter net loss of $477 million, highlighting the financial strain caused by the strike.
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