Audio By Carbonatix
Boeing is making immediate spending cuts and says it may temporarily lay off staff, as it grapples with a strike by more than 30,000 workers in the US.
The cuts include a freeze on hiring, "significant reductions" of spending at suppliers, and a ban on non-essential and first-and business-class travel, including by senior executives.
Boeing said the moves were aimed at preserving cash during the industrial action stand-off that executives have warned will worsen the firm's already perilous financial state.
"Our business is in a difficult period," chief financial officer Brian West wrote in a letter to staff.
"This strike jeopardizes our recovery in a significant way and we must take necessary actions to preserve cash and safeguard our shared future," he added.
The strike at Boeing began on Friday, hours after workers in Washington State and Oregon rejected a new four-year contract offer.
The proposed deal promised a 25% pay increase over four years and improvements to terms and conditions, and had been recommended to the workforce by union leaders.
Boeing itself described the offer as "historic", but the deal was overwhelmingly voted down by employees.
Talks are due to re-start on Tuesday, according to the union.
In the meantime factories building the 737 Max, the 777 and the 767 freighter have all been affected by the walk outs.
Boeing has asked suppliers to halt shipments of most parts for those planes, suspended non-essential capital spending and frozen spending on consultants.
The company, which employs more than 170,000 people, the majority of whom are based in the US, said it was also "considering the difficult step of temporary furloughs for many employees, managers and executives in the coming weeks".
Boeing has said the impact of the strike will depend on its duration, but analysts say an extended stoppage could cost the firm and its suppliers billions of dollars.
The last strike at Boeing in 2008 lasted about eight weeks.
Major ratings companies have warned that the stand-off could lead to a downgrade of the aerospace giant's credit rating, making it more expensive for the firm to borrow.
The company has been dealing with historic losses. Production has slowed as the firm responds to concerns about the quality of its manufacturing.
Separately, Boeing has agreed to pay $150m (£126m) to Brazilian plane-maker Embraer over its decision to walk away from talks about a possible merger in 2020.
Latest Stories
-
Chamber of Aquaculture Ghana calls for strong public-private partnerships to unlock finance and transform the sector
22 minutes -
Lions celebrate International Volunteer Day with over decades of service and impact
26 minutes -
3 dead, dozens injured in Mampong Abuontem head-on collision
36 minutes -
MoFFA shuts down several Eastern Region mortuaries over poor sanitation, non-compliance
37 minutes -
Domestic violence case: John Odartey Lamptey remanded over alleged brutal assault on wife
47 minutes -
Minority urges government to tackle smuggling and protect local farmers
49 minutes -
Ashanti regional minister drags Democracy Hub member to court over alleged galamsey remarks
51 minutes -
Mineral royalties surge across all sub-sectors in 2025; record strong gains in gold, manganese
52 minutes -
Police arrest five suspects behind robberies in Sefwi Bekwai
52 minutes -
Ghana’s economy to expand marginally to 5.9% in 2026 – Fitch Solutions
54 minutes -
Newage Agric Solutions donates rice, soybean oil and cash to MoFA for farmers’ day
54 minutes -
Analysis: After allocating over ₵1bn, parliament now turns on the OSP
2 hours -
OSP’s failure to stop Ofori-Atta is an irrecoverable mistake – Kpebu
2 hours -
UPSA confers posthumous honorary doctorate on former first lady Nana Konadu Agyeman-Rawlings
2 hours -
Martin Kpebu says he has not been formally charged by OSP
2 hours
