
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
-
Godfred Dame argues Hanan Abdul-Wahab’s Buffer Stock charge sheet is defective, seeks dismissal
2 minutes -
Ghana’s fiscal space remains limited despite economic gains – IERPP
8 minutes -
WAFCON 2026: Winner to receive record $2 million prize money
12 minutes -
OpenAI says its AI went rogue and launched ‘unprecedented’ cyber-attack
16 minutes -
Most bus fares in England to be capped at £2 from January
18 minutes -
Jeffrey Epstein-linked modelling scout Daniel Siad found dead in France
21 minutes -
NDC branch organiser granted GH¢200,000 bail over alleged false claims about Bawumia
34 minutes -
NPA CEO monitors 24-hour economy pilot at Tema petroleum depots
45 minutes -
WAFCON 2026: Cameroon target redemption as Indomitable Lionesses chase continental glory
47 minutes -
NSS investigating GH¢60 allowance deductions as refund decision awaits probe outcome
49 minutes -
BoG warns of arrest, imprisonment and fines for rejecting cedi and pesewa coins
52 minutes -
Wontumi brought to Accra High Court for Tano Nimiri case while serving 20-year sentence
56 minutes -
UCL 2026/27: Terry Yegbe scores in first leg qualifier as Lech Poznan beat AGF
1 hour -
Reform military budgeting process to reduce corruption risks – Dr Sowatey
1 hour -
John Boadu backs Wontumi, urges party supporters to remain calm after conviction
1 hour